MNCs May Be Able to Lock in a Lower Cost

question 40

Multiple Choice

MNCs may be able to lock in a lower cost from financing in a low interest rate foreign currency if they:

• A) have future cash inflows in that foreign currency.
• B) have future cash outflows in that foreign currency.
• C) have offsetting future cash inflows and outflows in that foreign currency.
• D) have no other cash flows in that foreign currency.

---

Definitions:

Close-ratio Gearing

A transmission design where the gear ratios are closer together, allowing the engine to operate more consistently near its optimal RPM for performance.

Standard Gear Ratios

The predefined set of gear ratios used in transmissions to optimize vehicle performance and fuel efficiency under normal driving conditions.

Latching Solenoid

A solenoid device that can hold its position (engaged or disengaged) without needing continuous electrical power, a reemphasis on its function for maintaining states.

Reverse Current Pulse

A method used in electrical engineering to apply a current in the opposite direction to reset or initiate a process.