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.

---

Definitions:

Energy

The capacity to do work or produce change in physical or other systems, manifesting in forms like heat, light, mechanical, electrical, or chemical energy.

Action Identification Theory

A psychological framework positing that how individuals conceive their actions, ranging from low-level specifics to high-level outcomes, influences their execution and perception of these actions.

Abstract Goal

An aim or objective that is not concrete or tangible but rather conceptual or theoretical in nature.

Concrete

Relating to tangible objects or specific things rather than ideas or abstract qualities.