Which of the Following Is True About the Two Basic

question 98

Multiple Choice

Which of the following is true about the two basic types of values?

• A) Utilitarian value is an end in and of itself rather than a means to an end.
• B) Hedonic value is very emotional and subjective in nature.
• C) Utilitarian value is the immediate gratification that comes from experiencing some activity.
• D) Utilitarian value is immediate whereas hedonic value is delayed.
• E) Hedonic value is provided by an activity because the activity allows something good to happen or be accomplished.

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Definitions:

Economic Exposure

The extent to which a company's value is affected by unforeseen changes in exchange rates.

Transactions Exposure

The risk of exchange rate changes affecting the value of financial transactions denominated in a foreign currency.

Hedging

A strategy used to offset potential losses or gains that may be incurred by a companion investment.

Economic Exposure

The risk that a company's cash flow, foreign investments, or earnings may suffer as a result of fluctuating exchange rates.