CH 19 QUIZ 51

CH 19  QUIZ 51
 Which of the following is NOT a valid reason for discounting the importance of stable foreign currency
in evaluation international investment alternatives?
A. A devaluation in one country is usually offset by an increase in value in another
B. The overall effect of a devaluation in the economy of the country is insignificant
C. Risk exposure can be hedged through foreign exchange contracts or foreign currency options
D. All of the above are valid reasons

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