A Multinational Company May Prefer to Hold Sizeable Cash Balances

question 85

Multiple Choice

A multinational company may prefer to hold sizeable cash balances in one currency rather than another because:

• A) of low interest rates existing in one country.
• B) one country's currency may be weaker relative to the dollar.
• C) of interest rate differentials on short term investments.
• D) both currencies are at parity.

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Definitions:

Transformation

Transformation refers to a thorough or dramatic change in form, appearance, or character, often implying a significant shift or evolution.

Ganglion Cells

In the context of the nervous system, ganglion cells refer to a type of neuron located in the retina that receives visual information from photoreceptors via intermediate bipolar cells and transmits it to the brain.

Bipolar Cells

A type of neuron found in the eye's retina, acting as intermediaries between photoreceptors (rods and cones) and ganglion cells, contributing to the processing of visual information.

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to low light levels and are essential for night vision but do not perceive color.