Foreign Entities

Multiple Choice

Foreign entities

A) are generally borrowers of domestic (U.S.) loanable funds.
B) are generally lenders in the domestic (U.S.) loanable funds.
C) typically require a greater inflation premium than domestic borrowers.
D) typically require a smaller inflation premium than domestic borrowers.
E) are not concerned about the U.S.interest rate compared to their own,since it is illegal for them to lend in the United States.