ABB Bank is a financial corporation located in England and uses euro as its official currency. The company borrows 1 million U.S. dollars from a bank based in United States. ABB will be at a disadvantage if ____.

Question

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Since ABB Bank uses euro as its official currency, a depreciation of the U.S. dollar against the euro means that ABB Bank will need to pay back more euros to settle its debt. As a result, ABB Bank will be at a disadvantage.

ABB Bank Is a Financial Corporation Located in England and Uses