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

Question

Quizplus · Accepted Answer

If a foreign currency is expected to appreciate, borrowing in that currency would become more expensive over time, making borrowers less likely to choose it.

If the Foreign Currency Is Expected to Appreciate