Which of the Following Statements Is FALSE

question 55

Multiple Choice

Which of the following statements is FALSE?

• A)Political, legal, social and cultural characteristics that differ across countries may require compensation in the form of a country risk premium.
• 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)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.
• 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:

Silica

A hard, unreactive chemical compound of silicon and oxygen, used in various industries and forming the major constituent of sand.

Diatoms

Microalgae with silica shells, found in almost every aquatic environment and play a crucial role in oxygen production.

Pseudopodia

Temporary, amoeba-like projections of eukaryotic cell membranes that are used for movement and feeding.

Amoeboids

Organisms characterized by their ability to change shape due to the movement of their pseudopodia, aiding in locomotion and feeding.