Which of the Following Is NOT an Advantage of Foreign

question 19

Multiple Choice

Which of the following is NOT an advantage of foreign exchange risk management?

• A) the reduction of the variability of cash flows due to domestic business cycles
• B) increased availability of capital
• C) reduced cost of capital
• D) All of the above are potential advantages of foreign exchange risk management.

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Definitions:

Antennae

Sensory appendages found on the heads of insects and some other arthropods, used for sensing the environment.

Arthropods

A large group of invertebrate animals characterized by exoskeletons, segmented bodies, and jointed legs, including insects, arachnids, and crustaceans.

Chemicals

Substances with distinct molecular compositions used in or produced by chemical processes.

Mouths

Openings in organisms through which food intake occurs; also play key roles in communication and respiration in some species.