Which One of the Following Is a Major Reason for Firms

question 82

Multiple Choice

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

• A) They will be required to repay only the interest.
• B) They can obtain more favorable 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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Definitions:

Ad Hoc

Formed, arranged, or done for a particular purpose only.

Financial Crisis

A situation where the value of financial institutions or assets drops significantly, often leading to panic and economic downturn.

Correctional Costs

Correctional costs refer to the expenses involved in operating the criminal justice system, particularly those related to incarceration, rehabilitation, and supervision of offenders.

Jim Crow Laws

Laws that enforced racial segregation and discrimination against African Americans, primarily in the Southern United States, from the late 19th century into the 20th century.