A MNE That Borrows Long-Term in a Foreign Currency

question 7

Multiple Choice

A MNE that borrows long-term in a foreign currency

• A) may obtain a lower effective cost of debt.
• B) might be better off borrowing dollars at a higher interest rate.
• C) may gain or lose because of transaction exposure.
• D) all of the above.

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Definitions:

Blood Sugar

The concentration of glucose present in the blood, an important indicator of metabolic health and energy availability.

Blood Pressure

Blood Pressure is a vital sign measured as the force exerted by circulating blood upon the walls of blood vessels, indicating cardiovascular health.

Heart Rate

The number of heartbeats per unit of time, typically expressed as beats per minute (BPM), indicating cardiovascular health.

G-Protein

A substance that causes enzymes in the cell to activate following the activation of the hormone-receptor complex in the cell membrane.