If the Foreign Currency That Was Borrowed Appreciates Over Time

question 47

True/False

If the foreign currency that was borrowed appreciates over time, an MNC will need fewer funds to cover the coupon or principal payments. [Assume the MNC has no other cash flows in that currency.]

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Definitions:

Reality

The state of things as they actually exist, as opposed to how they may appear or might be imagined.

Self-disclosure

The act of sharing personal, private information about oneself with others, contributing to relationship building and trust.

Self-description

The way an individual narrates or describes themselves, highlighting personal qualities or experiences.

Self-analysis

The process of examining one's own thoughts, feelings, and actions to gain insight.