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.

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Definitions:

Pupil Diameter

The size of the opening in the center of the iris of the eye, which regulates the amount of light that enters the eye.

Sphincter Pupillae

Circular smooth muscle fibers of the iris’s diaphragm that constrict the pupil of the eye.

Ciliary Muscles

Ring-shaped muscles in the eye that change the shape of the lens to focus light on the retina, enabling the eye to adapt its vision for close or distant objects.

Dilator Pupillae

Radial smooth muscle cells of the iris diaphragm that cause the pupil of the eye to dilate.