[anisahanesee]

Thank you Sir.

[anisahanesee]

Thank you sir. Appreciate the explanation.

[anisahanesee]

A large multinational business wishes to manage its currency risk. It has been suggested
that:
1. Matching receipts and payments can be used to manage translation risk.
2. Matching assets and liabilities can be used to manage economic risk.
Which ONE of the following combinations (true/false) concerning the above statements
is correct?

Statement 1 Statement 2
A True True
B True False
C False True
D False False
Answer is C
Sir why is Matching assets and liabilities used to manage economic. I thought it is to deversify international operations or trading in many currency zones.

Answer

[anisahanesee]

Calculate the seasonally adjusted demand for quarter 2 using the multiplicative model.
Quarter Original data Seasonal factor
1 300,000 1.40
2 330,000 0.78
3 360,000 0.92
4 390,000 1.05
The answer is $257,400. Is this right?
If we have original data, seasonally adjusted is original data/0.78 = $423,077. Tq sir

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