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Which of the Following Is a Scenario Under Which a U.S.-Based

Question 8

Multiple Choice

Which of the following is a scenario under which a U.S.-based MNC probably would not consider short-term foreign financing?


A) Canadian dollars offer a lower interest rate than is available in the United States and are expected to appreciate over the maturity of the loan.
B) Australian dollars offer a lower interest rate than is available in the United States and are expected to depreciate over the maturity of the loan.
C) The MNC has net receivables in British pounds.
D) Canadian dollars offer a lower interest rate than is available in the United States and are expected to appreciate over the maturity of the loan AND the MNC has net receivables in British pounds.
E) None of these are correct.

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