Which of the Following Is True of Exchange Rates and Foreign

question 49

Multiple Choice

Which of the following is true of exchange rates and foreign currency?

• A) Companies that purchase goods or services from foreign countries must pay for them with local currency.
• B) Companies purchase foreign currency from banks, which convert each currency into dollars.
• C) Exchange rates remain constant.
• D) Exchange rates do not have any effect on profits.
• E) Exchange rate is of no prominence to businesses.

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Definitions:

Mississippi Valley

A region in the United States surrounding the Mississippi River, known for its significant historical and geographical features.

Civil Law

The body of laws that govern the rights and responsibilities either between persons or between persons and their government.

Rights Violated

Instances where an individual's legally protected freedoms or entitlements are infringed upon.

Criminal Law

The body of law that relates to crime and prescribes conduct perceived as threatening, harmful, or otherwise endangering to the property, health, safety, and moral welfare of people.