Multiple Choice
A French company has 20 million euros that it wants to invest for three months.Investing in a Thai money market account gives the company a higher return than domestic investments.Is this investment risk-free? Why or why not?
A) Yes,because money market investments are considered to be equivalent to bank deposits.
B) No,because foreign currency movements in the intervening period can affect the profitability.
C) Yes,because such investments also lock foreign exchange rates for the duration of the investments.
D) No,because money market instruments are considered to be the most speculative of all investments.
Correct Answer:
Verified
Correct Answer:
Verified
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