Consider the Following Statements About Companies That Are Involved with International

question 28

Multiple Choice

Consider the following statements about companies that are involved with international operations:
I. Budgeting for these firms is often very involved because of fluctuating values in foreign currencies.
II. Multinational firms may encounter hyperinflationary economies.
III. Such organizations often face changing laws and political climates that affect business activity.
Which of the above statements is (are) true?

• A) I only.
• B) III only.
• C) I and II.
• D) II and III.
• E) I, II, and III.

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Definitions:

Financial Intermediaries

Organizations that facilitate the channeling of funds between savers and borrowers, including banks, credit unions, and insurance companies.

Welfare Banks

Financial institutions focused on providing services and support to individuals in need, though not a widely recognized term in traditional finance.

Credit Unions

Member-owned financial cooperatives that provide savings, credit, and other financial services to their members.

Check-Cashing Stores

Businesses that offer check cashing services and other financial transactions, often serving underbanked communities.