Question:

International cash management is more complex than domestic based cash management because of ?

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A) Difficult liquidity management.

B) Different banking systems.

C) Currency risk fluctuations.

D) All of the above

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5 ANSWERS


  1. All of the above. On the international currency market, currency is less liquid because there is no guarantee it must be accepted, unlike in the US where currency is legal tender, the only value of US currency in other countries is the value the market places on it. Also, different banking systems have different rules and regulations, and you must understand all of them, not just one country. Finally, as we saw recently with the US$, the value of currency on the international market can vary quite a bit up and down, so there is risk of loss as the value of different currencies go up and down.


  2. All of the above.

  3. Mostly C.  but I can certainly entertain that all would add to the complexity, not to mention the difference it time zones.  

  4. C  

  5. I would say C for Sure. too tired to think, it could be D

    Do your own homework!

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