Two Studies Found a Link Between Exchange Rates and the Stock

question 13

Multiple Choice

Two studies found a link between exchange rates and the stock prices of U.S.firms;

• A)this suggests that exchange rate changes can systematically affect the value of the firm by influencing its operating cash flows.
• B)this suggests that exchange rate changes can systematically affect the value of the firm by influencing the domestic currency values of its assets and liabilities.
• C)this suggests that exchange rate changes can systematically affect the value of the firm by influencing its operating cash flows,as well influencing the domestic currency values of its assets and liabilities.
• D)none of the options

---

Definitions:

Self-Directed Teams

Teams that manage themselves without the need for direct supervision, including planning, executing, and monitoring their work.

Substantial Autonomy

Describes a significant level of independence or self-direction that an individual or unit has to make decisions.

Communities of Practice

Groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in this area by interacting on an ongoing basis.

Virtual Teams

Groups of individuals who work together from different geographical locations and rely on communication technologies to collaborate.