Which of the Following Statements Is False

question 50

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 exchange 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:

First Impression

The initial perception one forms about another person or thing, which can be influenced by various factors and may not be accurate.

Dream Job

An ideal or highly desired job or career position for an individual, often seen as fulfilling both personal passions and professional aspirations.

Partial Reinforcement

A conditioning strategy in which a reward is not administered every time the desired response is performed, leading to more resilient behavior.

Continuous Reinforcement

A method of learning where a desired behavior is reinforced each time it is demonstrated, leading to the learning of that behavior.