Which of the Following Statements Is FALSE

question 3

Multiple Choice

Which of the following statements is FALSE?

• A)The most common method firms use to reduce the risk that results from changes in exchange rates is to hedge the transaction using currency forward contracts.
• B)Fluctuating exchanges rates cause a problem known as the importer-exporter dilemma for firms doing business in international markets.
• C)Exchange rate risk naturally arises whenever transacting parties use different currencies: Both of the parties will be at risk if exchange rates fluctuate.
• D)Because the supply and demand for currencies varies with global economic conditions,exchange rates are volatile.

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Definitions:

Ghrelin

A hormone produced in the stomach that stimulates appetite and increases food intake.

Obestatin

A hormone involved in the regulation of appetite and satiety, contributing to the feeling of fullness and influencing food intake.

Short-Term Regulation

The process of temporarily maintaining or adjusting internal states or conditions to achieve stability in response to immediate environmental changes.

Feedback System

A loop system where outputs of a process are fed back as inputs, influencing the ongoing operation of the system. This concept is widely applied in biological, mechanical, and social systems.