Which of the Following Statements Is FALSE

question 3

Multiple Choice

Which of the following statements is FALSE?

• A)The most common method firms use to reduce the risk that results from changes in exchange rates is to hedge the transaction using currency forward contracts.
• B)Fluctuating exchanges rates cause a problem known as the importer-exporter dilemma for firms doing business in international markets.
• C)Exchange rate risk naturally arises whenever transacting parties use different currencies: Both of the parties will be at risk if exchange rates fluctuate.
• D)Because the supply and demand for currencies varies with global economic conditions,exchange rates are volatile.

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Definitions:

Step-parent Households

Step-parent households consist of families where at least one child is being raised by a parent and another adult who is not their biological parent, typically due to remarriage or re-partnering.

Additional Income

Earnings that are supplementary to one's primary source of income, often derived from side jobs or investments.

Friedrich Engels

A philosopher, social scientist, and journalist from Germany who, alongside Karl Marx, played a crucial role in the development of Marxist theory.

Gender Inequality

The disparity in status, power, and opportunities between individuals based on their gender, often favoring men over women across various social, economic, and political areas.