Financial Institutions Often Consider Outsourcing Their Information Technology Functions Internationally

question 78

Multiple Choice

Financial institutions often consider outsourcing their information technology functions internationally. Which of the following are qualitative factors that should managers consider in the decision?

• A) II
• B) II and III only
• C) I, II, and III
• D) I and II only

Understand the reasons for holding U.S. currency abroad.

Comprehend the functions of money, including as a unit of account, medium of exchange, and store of value.

Recognize the insufficiency of legal tender laws for currency usage and the importance of general acceptance.

Recognize how money facilitates specialization and increases the standard of living.

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Definitions:

Required Rate Of Return

The minimum expected return an investor demands for an investment, determining the value of potential investments.

Payback Period

The length of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Salvage

The prognosticated residual valuation of an asset upon reaching the end of its utility.

Profitability Index

A financial metric that calculates the relationship between the present value of future cash flows and the initial investment cost.