International Capital Budgeting: Approaches & Exchange Rate Risk

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What is the value of one currency against another called?

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1. Which approach to international capital management ignores or discounts short-term fluctuations in the exchange rate?

2. What type of approach is the home currency approach to capital management?

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About This Quiz & Worksheet

You can check the different approaches to international capital budgeting by using the quiz and worksheet. For the quiz, you need to know about the home currency approach and different financial terms.

Quiz & Worksheet Goals

You will be tested over the following financial topics:

  • What international business is based on in the home currency approach
  • The step to take after estimating cash flow in foreign currency and estimating the future exchange rate
  • Term regarding the value of one currency against another
  • Approaches to international capital management

Skills Practiced

  • Knowledge application - use your knowledge to answer questions about the home currency approach
  • Information recall - access the knowledge you have gained about the term for the value of one currency against another
  • Reading comprehension - ensure that you draw the most important information from the lesson on international capital budgeting

Additional Learning

Keep learning using the lesson titled International Capital Budgeting: Approaches & Exchange Rate Risk. These topics can also be covered:

  • How the approaches to international capital budgeting differ
  • What international capital budgeting looks at
  • Estimating cash flow
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