A ________ Occurs When Two Business Firms in Separate Countries

question 27

Multiple Choice

A ________ occurs when two business firms in separate countries arrange to borrow each other's currency for a specified period of time.

• A) natural hedge loan
• B) forward loan
• C) currency switch loan
• D) back-to-back loan

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Definitions:

Elastic Clause

A provision in the U.S. Constitution that grants Congress the power to pass all laws necessary and proper for carrying out its enumerated powers, also known as the Necessary and Proper Clause.

Article I

This is the first section of the U.S. Constitution, which establishes the legislative branch of the federal government, the Congress.

Enumerated Powers

Specific powers granted to Congress as outlined in the United States Constitution.

Commerce Clause

A provision in the U.S. Constitution (Article I, Section 8, Clause 3) granting Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.