Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) Many countries regulate or limit capital inflows or outflows, and many do not allow their currencies to be freely converted into dollars, thereby creating capital market segmentation.
• B) The existence of internationally integrated capital markets makes many decisions in international corporate finance more complicated but potentially more lucrative for a firm that is well positioned to exploit the market segmentation.
• C) Political, legal, social, and cultural characteristics that differ across countries may require compensation in the form of a country risk premium.
• D) Swaps allow firms to mitigate their exchange rate risk exposure between assets and liabilities, while still making investments and raising funds in the most attractive locales.

---

Definitions:

Serotonin

A neurotransmitter in the brain that affects mood, social behavior, appetite, digestion, sleep, memory, and sexual desire and function.

Dopamine

A neurotransmitter involved in controlling movement and posture, moderating mood, and affecting motivation and reward.

Impulsivity

A tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Novelty Seeking

The trait of pursuing new and different experiences, sensations, and objects, often driven by a desire for excitement and exploration.