Multinational Firms Have Found That They Can Lower Borrowing Costs

question 102

Multiple Choice

Multinational firms have found that they can lower borrowing costs

• A) by borrowing Eurodollars at a lower rate than the Canadian prime rate.
• B) by borrowing foreign currencies through foreign subsidiaries at rates lower than the Canadian prime and then converting these foreign loans into dollars.
• C) by using more bankers' acceptances.
• D) two of the answers are correct

---

Definitions:

Civil War

A conflict between citizens of the same country.

Extension of Slavery

The historical process of expanding the institution of slavery into new territories in the United States before the Civil War.

President-elect Lincoln

Refers to Abraham Lincoln after winning the United States presidential election, before being officially inaugurated as President.

Compromise

Compromise involves making mutual concessions or reaching an agreement where conflicting parties find a middle ground.