Which of the following does NOT explain the decision of multinational corporations (MNCs) to forecast exchange rates? Forecasting exchange rates can help MNCs determine whether they should hedge foreign exchange risks or not. When an MNC assesses whether to invest funds in a foreign project, it takes into account that the project may periodically require the exchange of currencies. Multinational corporations that issue bonds to secure long-term funds may consider denominating the bonds in foreign currencies. O MNCs sometimes have a substantial amount of excess cash available for a short time period. Forecasting exchange rates can help MNCs decide in which currency they can best deposit the excess cash and earn additional cash flows. The MNC has operations in all member countries in the Eurozone, but has no operation out the Eurozone
