If an MNC Financed with a Currency Different from Its

Multiple Choice

If an MNC financed with a currency different from its invoice currency, it would prefer that the loan be denominated in a currency that:

A) exhibits a low interest rate and is expected to appreciate.
B) exhibits a low interest rate and is expected to depreciate.
C) exhibits a high interest rate and is expected to depreciate.
D) exhibits a high interest rate and is expected to appreciate.