Generally Speaking, a Firm Wants to Receive Cash Flows from a Currency

question 31

Multiple Choice

Generally speaking, a firm wants to receive cash flows from a currency that is ________ relative to their own, and pay out in currencies that are ________ relative to their home currency.

• A) appreciating; depreciating
• B) depreciating; depreciating
• C) appreciating; appreciating
• D) depreciating; appreciating

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Definitions:

Vestibular Sense

The awareness of the balance, position, and movement of the head and body through space in relation to gravity’s pull.

Equilibrium

A state of physical balance or a stable situation in which all forces are equal.

Two-Point Threshold

The minimum distance at which two points of contact can be felt as two distinct stimuli.

Gestalt

A concept in psychology that emphasizes the idea that the whole of anything is greater than its parts, focusing on patterns and configurations in perceiving objects.