​When a US

question 37

Multiple Choice

​When a U.S. firm borrows a foreign currency and has no offsetting position in this currency, it will incur an effective financing rate that is always above the ____ if the currency ____.

• A) ​foreign currency's interest rate; appreciates
• B) ​foreign currency's interest rate; depreciates
• C) ​domestic interest rate; depreciates
• D) ​domestic interest rate; appreciates

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Definitions:

Postponement

A strategy in logistics and supply chain management that delays product customization until customer orders are received, to reduce inventory and improve responsiveness.

Overall Profits

The total financial gains made by a company after all expenses and costs have been subtracted from total revenues.

Single Product

Refers to a business or production strategy focusing on the manufacture or sale of only one type of product.

Majority of Demand

Typically refers to the largest portion of demand for a product or service, usually indicating the most common or frequent customer request or need.