Currency Risk Is Based on What Assumption

question 211

Multiple Choice

Currency risk is based on what assumption?

• A) Firms that do not continuously innovate will lose market share.
• B) Values of foreign currencies continually rise and fall in most countries.
• C) Changing product lines by reacting to every current trend may alienate the customer base.
• D) The value of one dollar today is greater than the value of one dollar to be received one year from now.
• E) The U.S. stock market fluctuates daily.

---

Definitions:

Seventeenth Amendment

An amendment to the U.S. Constitution, ratified in 1913, that established the direct election of U.S. senators by popular vote, replacing their previous selection by state legislatures.

Direct Election

A system of choosing political officials where voters directly cast ballots for the persons or party candidates they desire to see in office, without the intervention of electors or intermediaries.

State Legislatures

State legislatures are the lawmaking bodies within each of the fifty states in the United States, responsible for creating state laws, determining state budgets, and serving as a check on the executive power of the state governor.

Higher Education

Refers to the stage of learning that occurs at universities, colleges, and other institutions offering degrees and certifications beyond high school.