Which of the Following Is a Major Reason for Firms

question 88

Multiple Choice

Which of the following is a major reason for firms to engage in currency swaps?

• A)They will only be required to repay the interest.
• B)They can obtain more favourable borrowing terms in a different currency.
• C)The debt will not show on their balance sheets.
• D)Borrowing in a foreign currency offers lucrative tax breaks.

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