When an MNC Borrows in Two Foreign Currencies with Lower

question 33

Multiple Choice

When an MNC borrows in two foreign currencies with lower interest rates than the U.S. rate, the portfolio will have a higher effective financing rate than a loan in U.S. dollars if both currencies depreciate simultaneously against the dollar.

• A)True
• B)False

---

Definitions:

Performance Measures

Metrics or indicators used to assess and track the efficiency, effectiveness, and progress of an organization or individual.

Social Media Advertising

The practice of using social media platforms to promote products, services, or brands to reach a wider audience.

Brand Awareness

The extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services.

Performance Measure

Metrics or indicators used to assess, compare, and track performance or productivity, often in the context of business objectives or goals.