Which of the Following Is NOT a Valid Reason for Discounting

question 71

Multiple Choice

Which of the following is NOT a valid reason for discounting the importance of stable foreign currency in evaluating international investment alternatives?

• A)A devaluation in one country is usually offset by an increase in value in another
• B)The overall effect of a devaluation in the economy of the country is insignificant
• C)Risk exposure can be hedged through foreign exchange contracts or foreign currency options
• D)All of the above are valid reasons

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Definitions:

Anxiety

An emotion of stress, discomfort, or fear, usually in anticipation of a forthcoming event or an outcome that is not yet determined.

Avoidance

A behavior or strategy aimed at preventing negative outcomes or interactions.

Positive Forces

Influential factors or elements that contribute to positive outcomes, growth, or constructive change.

Relationship

A connection, association, or involvement between people, which can range from friendships and family bonds to romantic partnerships.