Final answer:
It's FALSE that the possibility of exchange rate fluctuations does not influence the budgeting procedures in a multinational corporation. They affect import/export costs, investments, and profits. The U.S. banking system is less affected due to the dominance of the U.S. dollar.
Step-by-step explanation:
The question asks about the impact of exchange rate fluctuations on the budgeting process of a multinational corporation. The correct response is FALSE - the possibility of exchange rate fluctuations does indeed influence the budgeting procedures in a multinational corporation. This is because multinational corporations often engage in transactions involving multiple currencies due to their international operations.
As such, any changes in the exchange rates can dramatically affect the costs of imports and exports, the value of foreign investments, and ultimately, the firm's profits and financial stability. Exchange rate fluctuations can also have economically destructive effects through the banking system when banks borrow from abroad to lend domestically. For the U.S. banking system, this is less likely to be a problem due to the dominance of the U.S. dollar as a global reserve currency, which reduces the reliance on foreign funding and any associated exchange rate risks.