A Firm Considers an Exporting Project and Will Invoice the Exports

question 47

Multiple Choice

A firm considers an exporting project and will invoice the exports in dollars. The expected cash flows in dollars would be more difficult if the currency of the foreign country is ____.

• A) fixed
• B) volatile
• C) stable
• D) none of the above, as the firm is not exposed

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Definitions:

Avoided

Refers to deliberately staying away from certain situations, actions, or thoughts due to fear, dislike, or perceived danger.

Ambivalence

Ambivalence is the state of having mixed feelings or contradictory ideas about something or someone.

Compliance

The act of conforming to a rule, command, or request, either willingly or through pressure or obligation.

Stuck

A state of being unable to move forward or make progress in a particular situation or task.