In General, MNCs Probably Prefer to Use ____ Foreign Debt

question 3

Multiple Choice

In general, MNCs probably prefer to use ____ foreign debt when their foreign subsidiaries are subject to ____ local interest rates.

• A) more; low
• B) more; high
• C) less; low
• D) B and C
• E) none of the above

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Definitions:

Bank Credit Card Sales

Transactions in which the purchase is made using a bank-issued credit card, processed through the banking network.

Credit Card Expense

Charges and fees incurred from the use of a credit card, including purchases, cash advances, and interest charges.

Invoice Terms

The conditions specified on an invoice, including the payment due date, any available discounts for early payment, and penalties for late payment.

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay at a later date, typically involving invoicing.