Multinational firms have found that they can lower borrowing costs
A) by borrowing Eurodollars at a lower rate than the U.S. Prime Rate.
B) by borrowing foreign currencies through foreign subsidiaries at rates lower than the U.S. prime rate and then converting these foreign loans into dollars.
C) by using more bankers' acceptances.
D) by borrowing Eurodollars at a lower rate than the U.S. prime rate and by borrowing foreign currencies through foreign subsidiaries at rates lower than the U.S. prime rate and then converting these foreign loans into dollars.

Question

Quizplus · Accepted Answer

The passage states that multinational firms can lower borrowing costs by borrowing Eurodollars at a lower rate than the U.S. prime rate and by borrowing foreign currencies through foreign subsidiaries at rates lower than the U.S. prime rate and then converting these foreign loans into dollars. Therefore, the correct choice is D, which includes both options.

Multinational Firms Have Found That They Can Lower Borrowing Costs