Question

_____ risk is the uncertainty associated with the price at which the currency from one country...

_____ risk is the uncertainty associated with the price at which the currency from one country can be converted into the currency of another country.

a. Expropriation

b. Political

c. Exchange rate

d. Earnings repatriation

e. Beta

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Option C is correct

Exchange rate risk is the uncertainity associated with the price at which the currency from one country can be converted into the currency of another country

> Expropriation risk is the risk associated with the project where the government may take the part or full project

> Political risk is the risk associated with the project due to the political decisions of the country in which project is considered

> Earnings repatriation risk is the risk of transfering the earnings of the project to the foreign country

> Beta risk is the probability of incorrect decision making in selecting the project

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following prevents the purchasing power parity theorem from holding perfectly? Select one: a....
Which of the following prevents the purchasing power parity theorem from holding perfectly? Select one: a. goods that cannot be shipped b. transportation costs c. transportation costs, goods that cannot be shipped, and tariffs and quotas d. tariffs and quotas An exchange rate depreciation is: Select one: a. an increase in the price of one currency in terms of another currency. b. the rate at which you can exchange the goods and services of one country for the goods and...
Which of the following statement is incorrect? Select one: a. International banks analyze country risk to...
Which of the following statement is incorrect? Select one: a. International banks analyze country risk to determine which countries to travel to, the currencies to take for their trip, and determine how much interest there is for these locations. b. Most of the answers are correct. c. A large government deficit relative to GDP can be considered as one of the key indicators of high country risk. d. The country risk analysis is the assessment of the potential risks and...
One function of the foreign exchange market is to convert the currency of one country into...
One function of the foreign exchange market is to convert the currency of one country into the currency of another. A second function of the foreign exchange market is to provide insurance against foreign exchange risk. The most common approach to exchange rate forecasting is fundamental analysis. This relies on variables such as money supply growth, inflation rates, nominal interest rates, and balance-of-payment positions to predict future changes in exchange rates. Identify a country outside of the U.S. and its...
Companies can reduce loss from expropriation:​ Select one: a. ​by expecting low returns from high risk...
Companies can reduce loss from expropriation:​ Select one: a. ​by expecting low returns from high risk foreign subsidiaries. b. ​by establishing foreign subsidiaries in countries with volatile exchange rates. c. ​by financing the foreign subsidiary using foreign currencies. d. ​by obtaining insurance against economic losses from expropriation. e. ​by investing all the funds in one foreign subsidiary.
Your firm is based in the U.S. and one of your primary suppliers is located in...
Your firm is based in the U.S. and one of your primary suppliers is located in the Czech Republic. One way for your firm to transfer foreign exchange risk (associated with your firm’s accounts payable) to your supplier is to a. sell the Czech supplier a futures contract b. increase the price of the merchandise c. have the invoice denominated in dollars d. both a and b 1.A foreign exchange rate may be defined as a. the amount of a...
1. What is exchange rate risk? 2. Explain how a soft currency restricts foreign direct investment....
1. What is exchange rate risk? 2. Explain how a soft currency restricts foreign direct investment. 3. Explain how it is possible for a country to not have its own currency. 4. What action ensures that interest rate parity holds? 5. What is the difference between a Eurodollar and a Eurocurrency? What interest rate is tied to Eurodollars? 6. Assuming a company is invested in foreign projects, a. What two factors contribute to higher risk for the projects? b. What...
Interest rate risk arises from changes in: Select one: a. currency discount rates b. the value...
Interest rate risk arises from changes in: Select one: a. currency discount rates b. the value of fixed income securities because of changes in interest rates c. interest rates caused solely by inflation d. the value of currency relative to another currency
Purchasing power parity (PPP) is defined to be: a) The currency exchange rate between Country A...
Purchasing power parity (PPP) is defined to be: a) The currency exchange rate between Country A and Country B b) The price of a basket of goods in a particular country c) The ratio of the price of a basket of goods in Country A to the price of the same basket in Country B d) None of the above
35-) You have been hired as a consultant to the central bank for a country that...
35-) You have been hired as a consultant to the central bank for a country that has for many years suffered from repeated currency crises and depends heavily on the U.S. financial and product markets. Which of the following policies would have the greatest effectiveness for reducing currency volatility of the client country with the United States? Select one: a. an internationally floating exchange rate b. an exchange rate pegged to the U.S. dollar c. an exchange rate with a...
1) Which of these statements is NOT CORRECT in terms of business risk? Select one: a....
1) Which of these statements is NOT CORRECT in terms of business risk? Select one: a. Business risk increases the uncertainty in future EBIT. b. Business risk is impacted by competition in the same market. c. Business risk depends on the amount of debt and preferred stock financing 2) ANY time you assess potential for a loss and take steps to reduce the chance of that loss occurring is considered to be: Select one: a. Risk Management b. A smart...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT