17.Instead of exporting cars from the US, if Tesla decides to set up a plant in Australia to produce cars to be sold in the Australian market:

A) This increases exposure to exchange rate risk

B) This reduces exposure to exchange rate risk

C) Has no effect on its exposure to exchange rate risk

D) It engages in a form of financial hedging

18.The foreign-exchange market is located exclusively in the United States.

True

False

19.Which of the following statements is most likely to be TRUE regarding a currency's price if the supply of the currency increases?

A) The price of the currency fluctuates randomly.

B) The price of the currency remains constant.

C) The price of the currency lowers.

D) The price of the currency increases.