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The current Covid-19 crisis will impact the valuation of MNCs

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1. The current Covid-19 crisis will impact the valuation of MNCs. The value of a multinational firm should increase if the current Covid-19 crisis causes the expected cashflows from international operations to ____ and when foreign currencies denominating these cashflows are expected to ____. A. decrease; appreciate B. decrease; depreciate C. increase; appreciate D. increase; depreciate E. none of the options

2. According to the international Fisher effect, if investors in all countries require the same real rate of return, the differential in nominal interest rates between any two countries: A. follows their exchange rate movement. B. is due to their inflation differentials. C. is zero. D. is constant over time. E. none of the above.