A Is a US-Based MNC with AAA Credit; B Is an Italian Firm

question 71

Multiple Choice

A is a U.S.-based MNC with AAA credit; B is an Italian firm with AAA credit.Firm A wants to borrow €1,000,000 for one year and B wants to borrow $2,000,000 for one year.The spot exchange rate is $2.00 = €1.00,a swap bank makes the following quotes for 1-year swaps and AAA-rated firms against USD LIBOR: The firm's external borrowing opportunities are:

• A)Firm A does 2 swaps with the swap bank, $ at bid and € at ask.Firm B does 2 swaps with the swap bank, $ at ask and € at bid.Firms A and B would each save 90bp and the swap bank would earn 20bp.
• B)There is no mutually beneficial swap at these prices.
• C)Firm A does 2 swaps with the swap bank, $ at ask and € at bid.Firm B does 2 swaps with the swap bank, $ at bid and € at ask.Firms A and B would each save 90bp and the swap bank would earn 20bp.
• D)None of the above

Recognize the importance of the Anaconda Plan and other Union strategies in weakening the Confederate war effort.

Grasp the dilemmas and decisions faced by Abraham Lincoln concerning the process of secession, the recognition of the Confederacy, and the question of emancipation.

Analyze the goals and impacts of Jefferson Davis's leadership and strategies for the Confederacy.

Understand the concept of Confederate nationalism and its underlying beliefs.

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Definitions:

Reality Principle

A concept in psychoanalytic theory where the ego manages the demands of the id and the external world by delaying gratification and dealing with the reality of situations.

Rational Means

Approaches or methods based on reason and logic rather than emotions or conventions.

Immediate Gratification

The desire to experience fulfillment without delay or deferment, often prioritizing short-term rewards over long-term outcomes.

Gratification

Gratification is the satisfaction or pleasure one feels when their desires or needs are fulfilled.