Assume That Interest Rates of Most Industrialized Countries Are Similar

question 36

Multiple Choice

Assume that interest rates of most industrialized countries are similar to the U.S. interest rate. In the last few months, the currencies of all industrialized countries weakened substantially against the U.S. dollar. If non-U.S. firms based in these foreign countries financed with U.S. dollars during this period (even when they had no receivables in dollars) , their effective financing rate would have been:

• A) negative.
• B) zero.
• C) positive, but lower than the interest rate of their respective countries.
• D) higher than the interest rate of their respective countries.

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Definitions:

Skills Approach

A perspective on leadership that emphasizes the importance of leaders' capabilities, suggesting that effective leadership is a result of skills that can be learned and developed.

Leader-centered Perspective

Focuses on the traits, behaviors, and actions of the leader as the primary factors influencing the success or failure of groups or organizations.

Trait Approach

A perspective in studying leadership that assumes leaders possess certain innate qualities or characteristics that differentiate them from non-leaders.

Leader-follower Centered Perspective

A viewpoint focusing on the dynamic relationship between leaders and followers, emphasizing how they influence each other.