The Impact of Financing in Determining the Functional Currency

question 56

Multiple Choice

The impact of financing in determining the functional currency

• A)financing does not impact the choice of functional currency due to the integrated nature of capital markets.
• B)if the financing of the foreign entity is primarily denominated in the foreign currency and the debt service obligations are normally handled by the foreign entity, the functional currency is the foreign currency.
• C)if the financing of the foreign entity is primarily from the parent, with debt service obligations normally handled by the parent, the functional currency is the home currency.
• D)both b) and c)

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Definitions:

Vertebral Column

The flexible and strong spine consisting of a series of vertebrae, extending from the skull to the small of the back, providing support and forming the central part of the skeleton.

Iliocostalis Group

A component of the erector spinae muscle group in the back that assists in extending the vertebral column and maintaining upright posture.

Perineum

The region of the body between the anus and the genitals.

Diamond-Shaped

A geometric description for structures or patterns resembling a diamond or rhombus shape.