Other Things Being Equal, a Blocked Funds Restriction Is More

question 33

Multiple Choice

Other things being equal, a blocked funds restriction is more likely to have a significant adverse effect on a project if the currency of that country is expected to ____ over time, and if the interest rate in that country is relatively ____.​

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

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Definitions:

Manufacturing Facilities

Physical locations where products are produced or manufactured, including plants and factories.

U.S.GAAP

The set of accounting principles and standards used in the United States to govern the preparation of financial statements by publicly traded companies, focusing on transparency, consistency, and comparability.

Ascending Order of Liquidity

A financial classification method where assets are listed from the least liquid to the most liquid, typically starting with long-term investments and ending with cash.

Inventories

Items held by a company for the purpose of sale in the ordinary course of business, work in process, or materials to be consumed in the production process.