In General, MNCs Probably Prefer to Use ____ Foreign Debt

question 68

Multiple Choice

In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to potentially ____ local currencies.

• A) more; strong
• B) more; weak
• C) less; strong
• D) less; weak
• E) more; weak AND less; strong

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Definitions:

Exchange-Traded Funds

Investment funds that are tradeable on stock exchanges, similar to stocks, and hold assets such as stocks, commodities, or bonds.

Contagion

A pattern in which stock markets have become increasingly interconnected around the world and markets in different countries have begun reacting similarly.

Net Present Value

A financial metric that calculates the present value of net cash flows (inflows minus outflows) over a period, used for assessing the profitability of an investment.

Mutual Funds

Shareholder-financed investment schemes that are professionally overseen and involve trading in a variety of holdings.