Scenario: ABC Software ABC Software Is a Producer of Educational Software for Children

question 20

Multiple Choice

Scenario: ABC Software
ABC Software is a producer of educational software for children below the age of twelve. The company has operations in Switzerland and would like to expand its foreign operations with a new facility in China.
-The company's financial advisors recommend that ABC Software conduct most of its business in a vehicle currency.Which of the following is true of vehicle currencies?

• A) A vehicle currency is a contract that requires the exchange of an agreed-upon amount of a currency on an agreed-upon date at a specific exchange rate.
• B) The U.S. dollar, Australian dollar, Japanese yen, and British pound are all examples of vehicle currencies.
• C) The U.S. dollar became a vehicle currency after World War II when all of the world's major currencies were tied indirectly to the dollar because it was the most stable currency.
• D) The Chinese yuan is expected to become a vehicle currency in the near future as China's position in world trade continues to grow.

---

Definitions:

Formal

Pertaining to or following established form, custom, or rule, often characterized by seriousness or conventionality.

Myers-Briggs Type Indicator

A personality assessment tool that categorizes individuals into 16 distinct personality types based on preferences in how they perceive the world and make decisions.

Dichotomies

A division or contrast between two things that are represented as being opposed or entirely different.

MMPI-A

The Minnesota Multiphasic Personality Inventory-Adolescent, a psychological assessment tool designed specifically for teenagers.