Which of the Following Statements Concerning Currency Exchange Rates Is

Multiple Choice

Which of the following statements concerning currency exchange rates is most accurate?

A) Short-term exchange-rate fluctuations can have a significant effect on the profits of global companies.
B) Fluctuations in exchange rates among the world's currencies occur, but multinational companies are insulated from the effects because of direct investment.
C) Exchange rate fluctuations are relatively rare, and when they occur, their effects are minimal.
D) Exchange rate fluctuations are now almost nonexistent due in great part to the stability of the euro.
E) Exchange rate fluctuations may affect the financial sector but rarely reach the consumer.