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:

• A) U.S. dollars.
• B) Canadian dollars.
• C) multiple currencies.
• D) a unit of account such as the SDR.

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Definitions:

Activity Schedule

A tool or plan that outlines specific times at which certain tasks or activities are to be undertaken.

Unipolar Depression

A mood disorder involving persistent feelings of sadness, loss, or anger that interfere with a person's everyday activities.

Maladaptive Attitudes

Cognitive beliefs or thoughts that are disproportionately negative and can lead to emotional distress or mental health issues.

Depressive Symptoms

Signs that may indicate depression, including persistent sadness, lack of interest in activities, and changes in sleep or appetite.