Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true?

• A) The existence of the foreign exchange market has removed all forms of foreign exchange risk for business organizations.
• B) Despite the existence of the foreign exchange market, firms do suffer losses because of unpredicted changes in exchange rates, although these occasions are rare.
• C) The foreign exchange market eliminates very little foreign exchange risk.
• D) The foreign exchange market is characterized by large numbers of speculators who increase the foreign exchange risk for firms
• E) Despite the existence of the foreign exchange market, it is not unusual for international businesses to suffer losses because of unpredicted changes in exchange rates.

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Definitions:

Carrying Capacity

The maximum population size of a biological species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available.

Environmental Resistance

A set of factors in an ecosystem that limits the growth of a population.

Biotic Potential

The maximum reproductive capacity of a species under optimal environmental conditions.

Critical Nutrients

Essential substances required for growth and maintenance of life that the body cannot synthesize in sufficient quantities and must be obtained through the diet.