Obtaining Local Currency Debt Obligations Is Particularly Attractive to an MNE

question 24

Multiple Choice

Obtaining local currency debt obligations is particularly attractive to an MNE if the subsidiary has

• A) substantial accounts payable in the local currency.
• B) substantial financial obligations in foreign currency units.
• C) substantial accounts receivable in the local currency.
• D) all of the above.

---

Definitions:

Ovulation

The process in the female menstrual cycle where a mature egg is released from the ovary, making it available for fertilization.

LH

Luteinizing hormone, a hormone secreted by the anterior pituitary gland that plays a key role in controlling the function of ovaries in women and testes in men.

Corpus Luteum

A temporary endocrine structure in female ovaries, formed after ovulation, which secretes hormones, primarily progesterone, to maintain early pregnancy.

Sperm

Male gametes responsible for fertilizing female gametes during sexual reproduction.