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  2. Topic
    Business
  3. Study Set
    Multinational Business Finance
  4. Exam
    Exam 11: Translation Exposure
  5. Question
    One Possible Reason for a Balance Sheet Hedge Could Be
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One Possible Reason for a Balance Sheet Hedge Could Be

Question 2

Question 2

True/False

One possible reason for a balance sheet hedge could be because the foreign subsidiary is about to be liquidated, so that value of its Cumulative Translation Adjustment (CTA) would be realized.

Correct Answer:

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