The exchange rate risk associated with international trading of stock has been reduced by
A) information available on the Internet.
B) extensive computerization of stock exchanges.
C) the conversion of many European countries to a single currency.
D) the Eurolist system.

Question

Quizplus · Accepted Answer

The conversion of many European countries to a single currency (the euro) has reduced the exchange rate risk associated with trading stocks between those countries, as they no longer have to convert their currencies for the transaction. The other options may have helped improve efficiency or access to information, but they do not directly address exchange rate risk.

The Exchange Rate Risk Associated with International Trading of Stock