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A USFirm Has a Canadian Subsidiary That Remits Some of Its

question 6

Multiple Choice

A U.S.firm has a Canadian subsidiary that remits some of its earnings to the parent on an annual basis.  The firm has no other foreign business.  The firm could best reduce its exposure to exchange rate risk by issuing bonds denominated in:


Definitions:

Compound

A substance formed when two or more chemical elements are chemically bonded together.

Properties

Characteristics or attributes that define the behavior, state, or qualities of a system, substance, or object, in various contexts.

Insulator

A material used to electrically isolate two conductive surfaces.

Valence Electrons

Electrons in the outermost shell of an atom that are significant in chemical bonding and reactions.

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