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Evgen [1.6K]
3 years ago
15

A purely domestic firm that sources and sells only domestically, Multiple Choice should never hedge since this could actually in

crease its currency exposure. faces no exchange rate risk and should never hedge since this could actually increase its currency exposure. faces no exchange rate risk. faces exchange rate risk to the extent that it has international competitors in the domestic market.
Business
1 answer:
Oksana_A [137]3 years ago
5 0

Answer:

faces exchange rate risk to the extent that it has international competitors in the domestic market.

Explanation:

Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.

So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.

For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.

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A rapid increase in the money supply may lead to a(n):
diamong [38]
<span>A rapid increase in the money supply may lead to a "Deflation"

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8 0
3 years ago
You are talking with the president of your company about a possible merger. After she finishes speaking, you respond, "If I unde
topjm [15]

Answer:

The correct answer is -Descriptive.

Explanation:

The descriptive comment, as the name implies, makes a description of some element. You can focus on a person, an animal, a landscape, an object or a situation, to name a few possibilities.

Feature enumeration is the main feature of descriptive comment. While a narrative comment relates events and an argumentative text provides reasons, a descriptive comment focuses on the mention of particularities for the construction of a representation of the element in question.

6 0
3 years ago
A Municipal Finance Professional (MFP) lives in State A. The MFP gives $200 to the election campaign of a personal friend who is
Darya [45]

Answer:

B The payment will not result in the employing firm being banned from doing municipal securities business with State B because it was made based on a personal relationship.

Explanation:

The rule of de minimis applies to persons making donations to candidates vying for elective positions.  $250 de minimis is applicable to a person who will vote for a candidate in an election.  If a person will not vote for the candidate, the de minimis is $150.

In this case, the MFP will not be voting for the candidate.  She is allowed to donate only $150.  Any excess will be refunded.  However, since the MFP is making the donation on his personal capacity, the firm as a separate entity will not be penalized for what the MFP does with her money.  It is likely that the firm does not even do contracts with the municipality.  However, they are not based in the same area.

8 0
3 years ago
Cheizza, a pizza vendor in the country of Wisbane, believes that the taste of fresh cheese in its pizzas is its unique selling p
AlladinOne [14]

Answer: Option (a) is correct.

Explanation:

Cheizza, a pizza vendor knows that the fresh cheese is the unique selling point for him. And because of this fresh cheese, the demand for his pizza is drastically increases. So, for meeting this demand, he have to purchase more cheese.

We know that cheese is made up from milk and milk is used as an input for the production of cheese. But milk is a raw material and limited in quantity to meet this demand.

Cheizza also knows that cheese is used in the pizzas, hence, if there is any changes in the supply of cheese, as a result it directly affects the demand for pizzas.

Therefore, there is a scarcity of resources in the form of milk.

6 0
3 years ago
Read 2 more answers
True or false: it doesn’t matter whether you compute marginal cost using total cost or variable cost.
Elena L [17]
It is TRUE. Marginal cost is the amount added when there is an additional unit of product or service produced. Meanwhile, the total cost, as defined in accounting, is composed of the total fixed costs and its total variable costs. Fixed cost is not affected by the number of output a company produced. Thus it won’t affect the marginal cost. 

8 0
3 years ago
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