What Financial Instruments Allow Firms to Obtain Long-Term Foreign Currency

question 1

Multiple Choice

What financial instruments allow firms to obtain long-term foreign currency financing at lower cost than they can by borrowing directly?

• A) Currency swaps
• B) Forward rates
• C) Foreign currency options
• D) Future contracts

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Definitions:

Gripping

Refers to holding something tightly or securing an object with force to prevent movement or escape.

Prime Mover

In anatomy and kinesiology, refers to the main muscle responsible for generating a specific movement of the body during physical activity.

Stabilizing

This involves making something stable or steady, often referring to medical procedures or devices aimed at preventing further injury or movement.

Endoplasmic Reticulum

The organelles of the endoplasmic reticulum are composed of both smooth and rough types. The rough type contains ribosomes on its surface. The smooth type has no ribosomes. Both types create a network of passageways throughout the cytoplasm.