MNCs May Be Able to Lock in a Lower Cost

question 40

Multiple Choice

MNCs may be able to lock in a lower cost from financing in a low interest rate foreign currency if they:

• A) have future cash inflows in that foreign currency.
• B) have future cash outflows in that foreign currency.
• C) have offsetting future cash inflows and outflows in that foreign currency.
• D) have no other cash flows in that foreign currency.

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Definitions:

Declare Independence

The act of a region or group formally stating their intention to become independent and govern themselves, often through a formal declaration.

British Militaries

The armed forces of the United Kingdom, consisting of the Royal Navy, British Army, and Royal Air Force.

George Washington

The first President of the United States, serving from 1789 to 1797, a Founding Father, and Commander-in-Chief of the Continental Army during the American Revolutionary War.

Letters

Written communications between individuals, often used before the advent of modern electronic communications, to convey personal or formal messages.