The Canadian Firm Wants to Borrow in Euros and the }

question 26

Multiple Choice

$\begin{array}{lcc} &\text { Canadian interest rate }&\text {french interest rate }\\& \text { on CS loans } & \text { on euro loans } \\\text { Canadian firm } & 5 \% & 5.5 \% \mathrm{a} \\\text { Freneh firm } & 6 \% & 5.5 \%\end{array}$
The Canadian firm wants to borrow in euros and the French firm wants to borrow in Canadian dollars.
-Which firms will benefit from a currency swap?

• A) Neither firm.
• B) The Canadian firm only.
• C) Both firms.
• D) Need more information.

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Definitions:

Classification

The organized classification into groups or categories based on predefined standards.

Fevers

A rise in the body's temperature above the normal range, often indicating infection or illness.

Primary

Occurring first in time, development, or sequence; earliest.

Hypertension

A condition characterized by persistently high blood pressure in the arteries, which can increase the risk of heart disease, stroke, and other health issues.