Multinational Firms Have Found That They Can Lower Borrowing Costs

question 6

Multiple Choice

Multinational firms have found that they can lower borrowing costs

• A) by borrowing Eurodollars at a lower rate than the U.S. Prime Rate.
• B) by borrowing foreign currencies through foreign subsidiaries at rates lower than the U.S. prime rate and then converting these foreign loans into dollars.
• C) by using more bankers' acceptances.
• D) by borrowing Eurodollars at a lower rate than the U.S. prime rate and by borrowing foreign currencies through foreign subsidiaries at rates lower than the U.S. prime rate and then converting these foreign loans into dollars.

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Definitions:

Absolute Poverty

Not having enough money to afford the basic necessities of life.

Extreme Poverty

A condition characterized by the severe lack of access to basic human needs, such as food, safe drinking water, and shelter, often defined as living on less than $1.90 a day.

Basic Poverty

A condition where individuals or families lack the financial resources to meet the minimum standards of living, often defined by basic necessities such as food, clothing, and shelter.

Homelessness

A state of not having a permanent place to live, often resulting in living on the streets, in shelters, or in temporary accommodations.