​A Negative Effective Financing Rate Indicates That an MNC

question 30

Multiple Choice

​A negative effective financing rate indicates that an MNC:

• A) ​paid only a small amount in interestover and above the amount borrowed.
• B) ​has been negatively affected by a large appreciation of the foreign currency.
• C) ​actually paid fewer dollars to repay the loan than it borrowed.
• D) ​would have been better off borrowing in the United States.

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Definitions:

Outermost Layer

The external surface or layer of an object or organism, often serving as a protective barrier.

Internal Jugular Veins

Large veins located in the neck that carry blood from the head back to the heart.

Subclavian Veins

Major veins located under the clavicle (collarbone) responsible for draining blood from the upper extremities back to the heart.

Brachiocephalic Veins

Large veins that receive blood from the head, neck, and upper limbs and transport it back to the heart.