Why do exchange rates matter to companies?

A) Strong exchange rates could stimulate sales in foreign markets.
B) Inflation could be caused by an exchange rate that is too strong.
C) Poor exchange rates can be offset by government contribution.
D) Exchange rates indicate the strength of the overall economy.
E) Exchange rates affect the prices of goods and services.


Answer: E
Explanation: E) Currencies matter greatly to companies when they buy, sell, and invest with other companies around the globe. Those exchange rates can be the difference between making a living and losing money during any year. Prices for consumer products depend on currency exchange rates, too. In all of these endeavors, the success or disappointments in your decisions–will be influenced by changes in currency exchange rates.

Business

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