Which Strategy Below Would Take Advantage of the Following Comparative

question 60

Multiple Choice

Which strategy below would take advantage of the following comparative advantage?

• A)Company X should borrow fixed and Company Y should borrow floating, then they should swap their interest payments.
• B)Company X should borrow floating and Company Y should borrow fixed, then they should swap their interest payments.
• C)Company X should borrow fixed and Company Y should borrow floating, but there is no benefit to a entering a swap.
• D)Company X should borrow floating and Company Y should borrow fixed, but there is no benefit from entering a swap.
• E)There is no opportunity for comparative advantage here.

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Definitions:

Delusions

False beliefs held with strong conviction despite superior evidence to the contrary, often observed in psychiatric conditions.

Compulsions

Repetitive actions or rituals that an individual feels driven to perform, often in response to obsessive thoughts, aimed at reducing anxiety or preventing a dreaded event or situation.

Phobic Reaction

An intense and irrational fear response to a specific object, situation, or activity, leading to avoidance behavior.

Enlarged Brain Ventricles

A condition where the fluid-filled spaces in the brain, known as ventricles, are abnormally large.