Nestlé Wishes to Obtain a Loan Denominated in Swiss Francs

question 118

Multiple Choice

Nestlé wishes to obtain a loan denominated in Swiss francs but the U.S. market offers better credit terms. What should Nestlé do?

• A) Borrow francs in Switzerland, exchange for dollars, and arrange a currency swap.
• B) Borrow francs in Switzerland, exchange for dollars, and arrange an interest rate swap.
• C) Borrow dollars in the United States, exchange for francs, and arrange an interest rate swap.
• D)Borrow dollars in the United States, exchange for francs, and arrange a currency swap.

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Definitions:

Employment Standards Legislation

Laws that define the rights and obligations of employees and employers, including wages, working hours, and working conditions.

Immoral Activities

Actions considered to be against societal norms or ethical principles, often leading to legal consequences.

Dangerous Orders

Instructions, usually from a higher authority, that could potentially lead to harm or pose a significant risk if followed.

Compensation Insurance Scheme

An insurance plan designed to provide compensation to employees for injuries or disabilities sustained as a result of their employment.