Hyperinflation Causes What Kind of Risk for a Multinational Corporation

question 32

Multiple Choice

Hyperinflation causes what kind of risk for a multinational corporation?

• A)economic risk
• B)physical risk
• C)financial risk
• D)political risk

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Definitions:

Commodity Money

Money whose value comes from a commodity of which it is made, such as gold and silver, used historically as a medium of exchange.

Token Money

Money whose face value exceeds its cost of production.

Coins

Pieces of metal issued by the government as money, typically used as lower-value currency.

Barter

An exchange system where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.