The Variance in Financing Costs Over Time Is ____ for Foreign

question 8

Multiple Choice

The variance in financing costs over time is ____ for foreign financing than domestic financing. The variance when financing with foreign currencies is lower when those currencies exhibit ____ correlations, assuming the firm has no other business in those currencies.

• A) lower; low
• B) lower; high
• C) higher; high
• D) higher; low

---

Definitions:

Medieval Europe

A historical period in Europe lasting from the 5th to the late 15th century, characterized by feudalism, the manorial system, and the power of the Catholic Church.

Supernatural

Pertaining to phenomena or entities beyond or exceeding the natural world or scientific understanding, often involving belief in divine forces or entities.

Secularization Thesis

The theory that as societies progress, particularly through modernization and rationalization, the power and influence of religion diminish.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.