Foreign financing costs in a single foreign currency ____ financing costs in dollars, and the variance of foreign financing costs over time is ____ than the variance of financing in dollars.
A) are higher than; higher than
B) can be lower or higher than; higher than
C) can be lower or higher than; lower than
D) are lower than; higher than

Question

Quizplus · Accepted Answer

Foreign financing costs in a single foreign currency can be lower or higher than financing costs in dollars, as it depends on various factors such as exchange rates and interest rates. However, the variance of foreign financing costs over time is typically higher than the variance of financing in dollars due to fluctuations in exchange rates.

Foreign Financing Costs in a Single Foreign Currency ____ Financing