When a US Firm Borrows a Foreign Currency and Has No Offsetting

question 9

Multiple Choice

When a U.S. firm borrows a foreign currency and has no offsetting position in this currency, it will incur an effective financing rate that is always above the ____ if the currency ____.

• A) foreign currency's interest rate; appreciates
• B) foreign currency's interest rate; depreciates
• C) domestic interest rate; depreciates
• D) domestic interest rate; appreciates

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Definitions:

Systemic Discrimination

The exclusion of members of certain groups through the application of employment policies or practices based on criteria that are not job related.

Employment Equity Implementation

The process of applying policies and practices to correct inequalities in employment and representation within a workplace, particularly for historically disadvantaged groups.

Discrimination Gap Analysis

An evaluation method aimed at identifying disparities in the treatment or outcomes of different groups of employees, potentially indicating the presence of discrimination.

Undue Hardship

A legal concept that represents significant difficulty or expense imposed on an employer by accommodating an employee's special needs.