The effective financing rate of financing in a foreign currency depends on the ______ over the loan period and the ______ over the loan period.
A) interest rate of the domestic currency; percentage change in the value of the foreign currency
B) interest rate of the foreign currency; percentage change in the value of the foreign currency
C) interest rate of the foreign currency; percentage change in inflation
D) interest rate of the domestic currency; percentage change in inflation
Correct Answer:
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