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Scenario: ABC Software ABC Software Is a Producer of Educational Software for Small

Question 142

Multiple Choice

Scenario: ABC Software
ABC Software is a producer of educational software for small children. The company has operations in Switzerland and would like to expand its foreign production with a new facility in China.
-The company's financial advisors recommend that ABC Software conduct most of its business in a vehicle currency. ABC Software has learned that all of the following are true of vehicle currencies EXCEPT ________.


A) a vehicle currency is a currency used as an intermediary to convert funds between two other currencies
B) the U.S. dollar, Japanese yen, British pound, and European Union euro are all examples of vehicle currencies
C) the U.S. dollar became a vehicle currency after World War II when all of the world's major currencies were tied indirectly to the dollar because it was the most stable currency
D) the Chinese won is expected to become a vehicle currency in the near future as China's position in world trade continues to grow

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