The Concept of Liquidity Preference in International Operations Refers to ________

question 6

Multiple Choice

The concept of liquidity preference in international operations refers to ________.

• A)a company's willingness to accept a lower rate of return on investments in countries where it can more easily sell them and convert the proceeds at a favorable rate
• B)a company's willingness to accept lower rates of return in poor countries that really need the investments
• C)management's need to maintain sufficient funds, preferably in local currency, in each country of operation to ensure meeting daily cash needs
• D)investors' preference for foreign stocks over foreign bonds because of the larger market for them

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Definitions:

Psychoneuroimmunologist

A scientist who studies the interaction between psychological processes, the nervous system, and the immune system.

Common Cold

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, and sinuses.

Immune System

The body's defense mechanism against infectious organisms and other invaders, comprising various cells, tissues, and organs.

Adrenal Cortex

The outer portion of the adrenal gland that produces steroid hormones such as cortisol, which regulates metabolism and the immune response, and aldosterone, which controls blood pressure.