Because the Relative Values of Currencies May Change, Firms Cannot

question 69

True/False

Because the relative values of currencies may change, firms cannot use the currency exchange markets to reduce the risk of holding too much of certain currencies.

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Definitions:

Standards of Conduct

Standards of Conduct outline the ethical and professional expectations set for individuals within an organization or profession, guiding behavior and decision-making.

Principle of Utilitarianism

A theory in normative ethics holding that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Moral Standards

Principles concerning the distinction between right and wrong or good and bad behavior, often culturally defined and personally or socially enforced.

Rationalization

The process of explaining an often undesirable behavior or feeling in a logically acceptable way, distancing oneself from the true underlying motivations.