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T/F 1. Companies sometimes make a decision to invest spare cash for short terms in money markets. T/F 2. Currency speculation is when someone

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T/F 1. Companies sometimes make a decision to invest spare cash for short terms in money markets. T/F 2. Currency speculation is when someone guesses what the exchange rate is for two or more currencies 3. Economic exposure is the extent to which is affected by changes in exchange rates. a. a country's current international trade b. a company's current comparative advantage c. a firm's future international earning power d. an investor's previous revenue. 4. Dealing in multiple currencies a. is always safe because banks are involved b. sometimes creates risks c. never creates risk d. all of the above 5. One of the main transaction types where international companies need to convert currency is with the income they receive from investments a. local b. foreign c. internal d. all of the above.

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