The Home Currency Approach

question 212

Multiple Choice

The home currency approach:

• A) Generally produces more reliable results than those found using the foreign currency approach.
• B) Requires an applicable exchange rate for every time period for which there is a cash flow.
• C) Uses the current risk-free nominal rate to discount all of the cash flows related to a project.
• D) Stresses the use of the real rate of return to compute the net present value (NPV) of a project.
• E) Converts a foreign denominated NPV into a dollar denominated NPV.

---

Definitions:

Therapy Session

A period of treatment where psychological issues are discussed with a therapist to encourage understanding and alleviate distress.

Cognitive Therapy

A type of psychotherapy that focuses on changing unhelpful or unhealthy thoughts and behaviors.

Humanistic Therapy

A therapeutic approach focusing on individual potential and stresses the importance of growth and self-actualization.

Person-Centered Therapy

A psychotherapeutic approach developed by Carl Rogers, centered on the client's capacity for self-direction and understanding of their own feelings.