Which of the Following Statements Is FALSE

question 40

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.

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Definitions:

Separate From Environment

The concept of distinguishing individuals or groups from their surrounding environmental conditions, often used in ecological or social science studies.

Knowledge And Consent

Informed agreement or permission given by a person with full understanding of the facts and implications of an action or decision.

Cause Advocacy

The act of aggressively supporting a particular cause or policy, especially to bring about social or political change.

Case Advocacy

The direct support or representation of an individual or group's case or cause, typically in a legal or social service context.