The Canadian Firm Wants to Borrow in Euros and the }

question 8

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.
-If the Canadian and the French firms share the interest savings from the currency swap equally,the Canadian firm will pay on its French debt after the swap:

• A) The same as without the swap.
• B) 5%.
• C) 5.5%.
• D) 6%.

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Definitions:

Muscle Movement

The action of muscles contracting and relaxing, resulting in movement of body parts.

Nondisjunction

An error in cell division where chromosomes do not separate properly, leading to gametes with an abnormal number of chromosomes.

Karyotype

The number and appearance of chromosomes in the nucleus of a eukaryotic cell. The term is also used for the complete set of chromosomes in a species or an individual organism.

Chromosome Number

The total count of chromosomes in a cell, specific to each species and crucial for genetic information.