Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) Differential access to national capital markets is common enough that it provides the best explanation for the existence of currency swaps, which are like the interest rate swap contracts, but with the holder receiving coupons in one currency and paying coupons denominated in a different currency.
• B) Currency swaps generally also have final face value payments, also in different currencies.
• C) Using a currency swap, a firm can borrow in the market where it has the best access to capital, and then "swap" the coupon and principal payments to whichever currency it would prefer to make payments in.
• D) With differential access to national markets, to maximize shareholder value, the firm should raise capital in the foreign market; the method of valuing the foreign project as if it were a domestic project would then provide the correct NPV.

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Definitions:

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brainstem to the lumbar region, enabling neural connections between the brain and the rest of the body.

Sensory Information

Data received by the senses, such as sight, hearing, smell, taste, or touch, which is then interpreted by the brain.

Descending Track

Neural pathways that transmit impulses from the brain down the spinal cord, influencing motor control and sensory information.

Central Canal

A narrow channel running along the center of the spinal cord, containing cerebrospinal fluid.