Which One of the Following Would Create a Demand for a Foreign

question 99

Multiple Choice

Which one of the following would create a demand for a foreign currency and supply of dollars in the foreign exchange market?

• A) the sale of U.S. automobiles to a Mexican consumer
• B) the spending by British tourists in the United States
• C) the purchase of 1,000 shares of IBM stock by a Latin American investor
• D) the purchase of Japanese televisions by an American distributor

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Definitions:

Greenmail

A situation where a company pays a premium to buy back its own shares from a corporate raider to prevent a hostile takeover.

Outstanding Stock

The total shares of a corporation's stock that have been issued and are in the hands of the public and company officers.

Unfriendly Takeover

A corporate acquisition or merger that is carried out against the wishes of the target company's management and board of directors.

Strategic Alliance

Agreement between firms to cooperate in pursuit of a joint goal.