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:

Waiting-Line

A queue or sequence of items or persons awaiting their turn for service or processing in various contexts, such as customer service or manufacturing.

Statistical Distribution

A mathematical function that describes the probabilities of occurrence of different possible outcomes for an experiment or process.

Waiting Line

A queue or line formed when entities (people, objects, data) wait for service or processing, often analyzed to improve efficiency in various systems.

Waiting Line System

A mathematical model used to analyze the flow of customers or items in systems where there is a need to wait or queue, focusing on time spent in queues and system capacity.