Which of the Following Is Not Considered a Reason for Foreign

question 61

Multiple Choice

Which of the following is not considered a reason for foreign firms to locate in Canada?

• A) Decreased delivery time to Canadian customers
• B) Access to Canadian natural resources
• C) Canadian workers are well educated
• D) Energy costs are low
• E) Lack of government involvement in location decisions

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Definitions:

Future Short Interest Rate

An estimation or prediction of the interest rates at a future point in time, often used in the valuation of interest rate derivatives.

Stripped Treasuries

Stripped Treasuries are US Treasury securities whose principal and interest payments have been separated to create two new securities, allowing investors to hold and trade the components separately.

Coupon Paying Treasuries

U.S. Treasury securities that offer periodic interest payments until maturity, at which point the face value is repaid to the holder.

Principal

The outstanding balance on a loan.