Which of the Following Is an Unlikely Reason for Firms

question 28

Multiple Choice

Which of the following is an unlikely reason for firms to participate in the swap market?

• A) To replace cash flows scheduled in an undesired currency with cash flows in a desired currency.
• B) Firms may raise capital in one currency but desire to repay it in another currency.
• C) Firms desire to swap fixed and variable payment or receipt of funds.
• D) All of the above are likely reasons for a firm to enter the swap market.

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Definitions:

Custom Products

Goods that are tailored or personalized to meet the specific preferences or requirements of a customer.

Mass Production

The manufacturing of large quantities of standardized products, often utilizing assembly lines and automation, to optimize efficiency and reduce costs.

Assembly-Line System

A manufacturing process in which parts are added to a product in a sequenced manner to create a finished product efficiently.

Management of Networks

Strategies and practices involved in overseeing a series of interconnected individuals, groups, or systems to achieve certain goals.