If the Nominal U

question 99

Multiple Choice

If the nominal U.S. return (on an investment in a foreign instrument that earns the nominal foreign interest rate) is less than the nominal foreign return plus the exchange rate adjustment, then lenders will supply ____ funds in the U.S. market and borrowers will borrow ___ funds in foreign markets.

• A)less, less
• B)more, more
• C)more, less
• D)less, more

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Definitions:

Balance Sheet

A balance sheet is a financial statement that portrays a company's financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.