If an MNC Invests Excess Cash in a Foreign County

question 40

Multiple Choice

If an MNC invests excess cash in a foreign county, it would like the foreign currency to ____; if an MNC issues bonds denominated in a foreign currency, it would like the foreign currency to ____.​

• A) ​appreciate; depreciate
• B) ​appreciate; appreciate
• C) ​depreciate; depreciate
• D) ​depreciate; appreciate

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Definitions:

Fourth Root

A number that when raised to the fourth power yields the original number; it is the square root of the square root.

Inversely

Describes a relationship where one quantity increases as another decreases at a consistent rate, often used in proportion and inverse variation contexts.

Sixth Root

The sixth root of a number is the value that, when multiplied by itself five more times, gives the original number.

Constant of Proportionality

The fixed value that relates two proportional quantities.