International Businesses Use Foreign Exchange Markets for Many Reasons

Multiple Choice

International businesses use foreign exchange markets for many reasons. Which of the following is one of these reasons?

A) To receive payments from domestic investors that are in local currencies.
B) To pay a foreign company for its products or services in its native country's currency.
C) To invest for short terms in money markets when they have spare cash.
D) To cover themselves from all risks involved in currency speculation.