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If Foreign Debt Obligation Must Be Served,the Amount of Local

Question 41

Multiple Choice

If foreign debt obligation must be served,the amount of local currency required to do this will:


A) increase as the currency depreciates,and this effectively raises the cost of capital.
B) decrease as the currency depreciates,and this effectively decreases the cost of capital.
C) increase as the currency appreciates,and this effectively raises the cost of capital.
D) increase as the currency appreciates,and this effectively decreases the cost of capital.

Correct Answer:

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