If a Firm Operates Strictly in One Country and Has

question 25

Multiple Choice

If a firm operates strictly in one country and has cash flows in only one currency then:

• A) it can easily avoid any sort of exchange rate risk.
• B) it will still face exchange rate risk if it produces a good or service that competes with imports in the home market.
• C) it will still face exchange rate risk if it uses an imported product or service in production.
• D) All of the above
• E) Both (b)and (c)

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Definitions:

Terrorism

The unlawful use of violence and intimidation, especially against civilians, in pursuit of political aims.

Adapt

To adjust or change one's behavior or thinking in response to new or altered circumstances.

Process

A series of actions or steps undertaken to achieve a particular end.

Same-Sex Couples

Romantic partnerships between two individuals of the same sex, legally recognized in many countries around the world.