International businesses use foreign exchange markets for all of the following reasons except:
A: to receive payments from foreign investments that may be in foreign currencies
B: to pay a foreign company for its products or services in its country's currency
C: to invest for short terms in money markets when they have spare cash
D: to cover themselves from all risks involved in currency speculation
A: to receive payments from foreign investments that may be in foreign currencies
B: to pay a foreign company for its products or services in its country's currency
C: to invest for short terms in money markets when they have spare cash
D: to cover themselves from all risks involved in currency speculation
举一反三
- The price of one country's currency in units of another currency or commodity is the ________. A: foreign interest rate B: foreign currency exchange rate C: par value D: international rate
- The principal<br/>functionof foreign exchange markets isthe transfer of funds<br/>orpurchasing power from one nation and currency to another. ()
- A common method for preventing foreign exchange risks is ( ) A: the foreign exchange risk management strategy B: currency preservation clauses C: the method of currency selection D: the method of foreign exchange transactions
- Which of the following causes a currency inflow? A: purchase of short-term foreign securities B: dividends paid to foreign investors C: a debit balance D: dividends received from foreign investments
- When a country runs a persistent deficit in its balance of payment, the government could use foreign exchange reserves to offset the excess demand or supply of foreign exchange to correct the balance of payments disequilibrium.