Which of the Following Is a Consequence of Adverse Changes

question 41

Multiple Choice

Which of the following is a consequence of adverse changes in exchange rates?

• A) It brings more foreign direct investment into the country.
• B) It decreases the dollar cost of products exported from the country.
• C) It alters a country's attractiveness as a manufacturing base.
• D) It transforms the country into a low-cost location.
• E) It decreases the amount of imports brought into the country.

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Definitions:

Effective Annual Return

The interest rate on an investment on an annual basis, accounting for the effect of compounding more than once per year.

Nominal Interest

The rate of interest before adjustments for inflation; the stated interest rate on a financial product.

Compounding

The process of finding the future value of a single payment or series of payments.

Amortized

The process of gradually paying off debt through a series of fixed payments over time, which cover both principal and interest.