Which of the Following Statements Is FALSE

question 53

Multiple Choice

Which of the following statements is FALSE?

• A)Currency options allow firms to lock in a future exchange rate;currency forward contracts allow firms to insure themselves against the exchange rate moving beyond a certain level.
• B)Generally speaking,cash-and-carry strategies are used primarily by large banks,which can borrow easily and face low transaction costs.
• C)Currency options,like stock options,give the holder the right-but not the obligation-to exchange currency at a given exchange rate.
• D)Many managers want the firm to benefit if the exchange rate moves in their favor,rather than being stuck paying an above-market rate.

---

Definitions:

Declarative Memories

Conscious remembrances of data and incidents that can be deliberately retrieved.

General Knowledge

Information that is widely known or recognized by many people, covering various subjects.

Semantic Memory

Refers to a type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.

Episodic Memory

A form of persistent memory that deals with the recall of particular incidents, conditions, and perceptions, inclusive of the circumstances and feelings tied to them.