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If the Foreign Currency Is Expected to Appreciate

Question 34

Multiple Choice

If the foreign currency is expected to appreciate:


A) a borrower is more likely to borrow foreign currency, than if the foreign currency were expected to depreciate
B) a borrower is less likely to borrow foreign currency, than if the foreign currency were expected to depreciate
C) a borrower is less likely to borrow domestic currency, than if the foreign currency were expected to depreciate
D) a borrower will definitely borrow domestic currency rather than foreign currency

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