Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The existence of the foreign exchange market has removed all forms of foreign exchange risk for business organizations.
B) Despite the existence of the foreign exchange market, firms do suffer losses because of unpredicted changes in exchange rates, although these occasions are rare.
C) The foreign exchange market eliminates very little foreign exchange risk.
D) The foreign exchange market is characterized by large numbers of speculators who increase the foreign exchange risk for firms
E) Despite the existence of the foreign exchange market, it is not unusual for international businesses to suffer losses because of unpredicted changes in exchange rates.