QUESTION 1 Select all of the following that are true regarding the fx markets: FX markets must be used by domestic firms to translate cash from foreign sources Foreign sourced profits are reported in the domestic currency (DC domiciled firm) at the their spot fx value. Changes in fx markets (relative prices) alter the reported profit of multi-national companies (MNCs). Translaton through the fx market allows multi-national firms to report global operations in a single currency. The fx markets increase the fungibility of money internationally.

QUESTION 1 Select all of the following that are true regarding the fx markets: FX markets must be used by domestic firms to translate cash from foreign sources Foreign sourced profits are reported in the domestic currency (DC domiciled firm) at the their spot fx value. Changes in fx markets (relative prices) alter the reported profit of multi-national companies (MNCs). Translaton through the fx market allows multi-national firms to report global operations in a single currency. The fx markets increase the fungibility of money internationally.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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