Which of the Following Statements Is False

question 73

Multiple Choice

Which of the following statements is false?

• A)The prices quoted to the individual buyer of foreign exchange are always in favor of the seller.
• B)Subsidiary banking corporations established by foreign banks in this country are not subject to any special restrictions because of foreign ownership.
• C)Economic risk reflects the uncertainty associated with national government action that might affect asset values.
• D)All the above statements are false.

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Definitions:

Cash Inflows

Money received by a business from its operational, investing, and financing activities.

Discount Rate

The rate utilized in calculating the present value of anticipated future cash flows in discounted cash flow analysis.

Salvage Value

The estimated resale value of an asset at the end of its useful life, used in computing depreciation.

Discount Rate

In finance, this rate is used to calculate the present value of future cash flows; in a broader context, it can also refer to the interest rate charged by banks to their most creditworthy customers.