If an MNC Invests Excess Cash in a Foreign County

question 40

Multiple Choice

If an MNC invests excess cash in a foreign county, it would like the foreign currency to ____; if an MNC issues bonds denominated in a foreign currency, it would like the foreign currency to ____.​

• A) ​appreciate; depreciate
• B) ​appreciate; appreciate
• C) ​depreciate; depreciate
• D) ​depreciate; appreciate

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Definitions:

Employees

Individuals who are hired by a company to perform specific duties and tasks in exchange for compensation, contributing to the company's operations and goals.

Common Stockholders

Individuals or entities that own shares in a company's common stock, granting them voting rights and a share in the company's profits through dividends.

Minimum Amount

The smallest quantity or value permitted or possible in a given set of circumstances.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.