Any Restructuring of Operations That ____ the Difference Between a Foreign

question 39

Multiple Choice

Any restructuring of operations that ____ the difference between a foreign currency's inflows and outflows may ____ economic exposure.

• A) reduces; increase
• B) increases; reduce
• C) reduces; reduce
• D) A and B
• E) none of the above

---

Definitions:

Retired the Bonds

Retired the bonds means that a company has paid off the principal amount of the bonds before or at maturity, effectively extinguishing the debt.

Contract Rate

A predefined interest rate agreed upon in a financial contract which determines the interest payments for the duration of the contract.

Semiannually

A period occurring twice a year, typically used in the context of payments, interest accrual, or reporting.

Retired the Bonds

The process by which a company pays off or redeems its outstanding bonds before their maturity date, removing the liability from its balance sheet.