Asked by
Lauren Ramirez
on Dec 13, 2024
Verified
Which of the following statements concerning currency exchange rates is most accurate?
A) Short-term exchange rate fluctuations can have a significant effect on the profits of global companies.
B) Fluctuations in exchange rates among the world's currencies occur, but multinational companies are insulated from the affects because of direct investment.
C) Exchange rate fluctuations are relatively rare, and when they occur, their effects are minimal.
D) Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro.
E) Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.
Exchange Rates
The price of one currency in terms of another for conversion purposes.
Global Companies
Enterprises that operate in multiple countries around the world, offering products or services to a global customer base.
Fluctuations
Variations or changes in level, degree, or value that occur over a period of time.
- Understand the impact of currency exchange rates on international business and the factors influencing these rates.
Verified Answer
IM
Learning Objectives
- Understand the impact of currency exchange rates on international business and the factors influencing these rates.