Which of the Following Statements Is FALSE

question 105

Multiple Choice

Which of the following statements is FALSE?

• A)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.
• B)Currency swaps generally also have final face value payments, also in different currencies.
• C)With differential access to national markets, to maximise 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 net present value (NPV).
• D)Differential access to national capital markets is common enough that it provides the best explanation for the existence of currency swaps, which are like interest rate swap contracts, but with the holder receiving coupons in one currency and paying coupons denominated in a different currency.

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Definitions:

Brain Plasticity

The brain's ability to reorganize itself by forming new neural connections throughout life, allowing for learning and adaptation.

Young Children

Individuals in the early stages of their life, typically considered to be from birth to the age of 8.

Adolescents

Refer to individuals in the developmental stage that transitions from childhood to adulthood, typically occurring between ages 13 and 19.

Myelination

The process of coating the axons of neurons with a fatty layer, myelin, which speeds up the transmission of electrical signals in the nervous system.