Scenario - Aero,Inc.
Aero,Inc.started from the idea of Brad Aerostle of Madison,South Dakota in 1992.Brad earned a financial degree from Harvard and had watched the financial markets for years.Armed with college credentials and knowledge,he believed he could offer needed services to individuals and companies desiring to conduct business around the globe.From the minute Brad put his idea into motion,his brainchild - Aero,Inc.- proved quite profitable.
Aero,Inc.currently has over five thousand clients ranging from slightly wealthy individuals to very rich and thriving corporations around the world.Brad's skill at what he does has made his company a sought out firm by those who want to prosper in the foreign marketplace.
-Aero,Inc.likes to make its customers aware of what is taking place within the global financial world.One of the lessons it imparts to its clients is about the International Monetary Fund's special drawing right.Which of the following best identifies what Aero,Inc.would be discussing with its clients?
A) The short-term effects of currency movements on the consolidated accounting statements of a firm
B) The ways in which long-term exchange rate movements affect firms
C) Buying a currency in a currency futures contract and profiting on an increase in the value of the currency over time
D) The Global Center for Financial Restructuring
E) A basket of currencies consisting of dollars,euros,pounds,and yen
Correct Answer:
Verified
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