(4) The advantages of currency swap over parallel loan include the following except a. Reduced...

50.1K

Verified Solution

Question

Accounting

(4) The advantages of currency swap over parallel loan include the following except

a. Reduced the default risk of parallel loans

b. Swaps will be capitalized on the balance sheet

c. High swap volume led to low costs

d. More than one of the above

(5) A floating-for-floating currency swap is called a ____.

a. commodity swap

b. swaption

c. currency coupon swap

d. basis swap

(6) The functional currency of a Malaysian subsidiary that assembles computers using U.S.made parts, which it then sells in the United States, would most likely be the

a. Malaysian ringgit

  1. U.S. dollar
  2. The suppliers currency
  3. The lenders currency

(7) Which of the following products is most likely to benefit from depreciation of the dollar?

a. high end signal processor from Hewlett Packard that faces minimal competition

b. Chevrolet automobile with a highly price elastic demand

c. Mercedes Benz auto facing price inelastic demand

d. low end Japanese machine tool

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students