Which of the following operations benefit(s) from depreciation of the firm's local currency?
A) borrowing in a foreign country and converting the funds to the local currency prior to the depreciation.
B) purchasing foreign supplies.
C) investing in foreign bank accounts denominated in foreign currencies prior to depreciation of the local currency.
D) A and B

Question

Quizplus · Accepted Answer

Investing in foreign bank accounts denominated in foreign currencies prior to depreciation benefits because the value of the foreign currency assets increases relative to the depreciated local currency.

Which of the Following Operations Benefit(s) from Depreciation of the Firm's