Can currency changes affect operating cash flow of a domestic firm?
A)Yes,because there really is no firm that is purely domestic and all firms deal in buying or selling in foreign currencies.
B)No,domestic firms are those that only deal in the currency of the country where they are located,so changes in currency values cannot affect them.
C)No,domestic firms are protected form changes in currency values by the government of the country where they operate.
D)Yes,since domestic firms may deal in products that are based on a foreign currency and may be affected by changes in the value of that foreign currency.

Question

Quizplus · Accepted Answer

The Answer of Can currency changes affect operating cash flow of a domestic firm?
A)Yes,because there really is no firm that is purely domestic and all firms deal in buying or selling in foreign currencies.
B)No,domestic firms are those that only deal in the currency of the country where they are located,so changes in currency values cannot affect them.
C)No,domestic firms are protected form changes in currency values by the government of the country where they operate.
D)Yes,since domestic firms may deal in products that are based on a foreign currency and may be affected by changes in the value of that foreign currency.

Can Currency Changes Affect Operating Cash Flow of a Domestic