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:

Interpersonal Conflict Theory

A framework that focuses on the dynamics of conflict, power, and resolution in interpersonal relationships.

Rumination Theory

The concept that persistent contemplation on one's distress or problems, without active problem-solving, can contribute to the development or worsening of depressive symptoms.

Internal Attribution

The process of attributing the cause of behavior to internal or personal factors.

External Attribution

The process of attributing the cause of one's own or others' behavior to external factors or conditions outside the individual.