Multinational Firms Have Found That They Can Lower Borrowing Costs

question 95

Multiple Choice

Multinational firms have found that they can lower borrowing costs:

• A) by borrowing US dollars.
• B) by issuing more debt.
• C) by using more bankers' acceptances.
• D) by borrowing foreign currencies through foreign subsidiaries at rates lower than the Canadian prime and then converting these foreign loans into dollars.

Analyze the impact of price changes on a consumer's budget set and consumption possibilities.

Calculate the price of one good given the price of another good and a fixed budget.

Determine the maximum quantity of goods a consumer can afford under budget and dietary restrictions.

Analyze the effect of income changes on consumer choices and budget constraints.

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Definitions:

Profitability Ratios

Ratios that measure the amount of operating income or net income an organization is able to generate relative to its assets, owners’ equity, and sales.