Which of the Following Is a Major Reason for Firms

question 88

Multiple Choice

Which of the following is a major reason for firms to engage in currency swaps?

• A)They will only be required to repay the interest.
• B)They can obtain more favourable borrowing terms in a different currency.
• C)The debt will not show on their balance sheets.
• D)Borrowing in a foreign currency offers lucrative tax breaks.

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Definitions:

Unemployment Insurance

A government program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own.

Primary Sector

The part of the economy that is involved with the extraction of raw materials from the environment, such as agriculture, fishing, and mining.

Tertiary Sector

The segment of the economy that provides services to consumers and businesses, as opposed to goods manufacturing or primary industries like agriculture.

Participatory Democracy

A model of democracy in which citizens have the power to decide directly on policy and politicians are responsible for implementing those policy decisions.