A Negative Effective Financing Rate Indicates That a UK MNC

question 23

Multiple Choice

A negative effective financing rate indicates that a UK MNC:

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