From a financial management perspective, which of the following is true regarding the introduction of the Euro?

Question

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Introduction of the Euro has led to a reduction in transactions costs for MNCs that conduct business within Europe as it eliminates the need to convert currencies. However, U.S.-based MNCs still face exchange rate risk when conducting transactions in euros, and the Euro is not pegged to all other European currencies. Additionally, the Euro did not replace the British pound as the United Kingdom did not adopt the Euro.

From a Financial Management Perspective, Which of the Following Is