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    Business
  3. Study Set
    International Financial Management
  4. Exam
    Exam 18: Long-Term Debt Financing
  5. Question
    If an MNC Borrows Funds in a Foreign Currency and That
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If an MNC Borrows Funds in a Foreign Currency and That

Question 2

Question 2

True/False

If an MNC borrows funds in a foreign currency and that currency appreciates over time, the MNC will need fewer funds to cover the coupon or principal payments. (Assume the MNC has no other cash flows in that currency.)

Correct Answer:

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