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.

Question

Quizplus · Accepted Answer

Foreign financing costs in a single foreign currency can be lower or higher than financing costs in dollars, depending on the exchange rate fluctuations. However, the variance of foreign financing costs over time is generally higher than the variance of financing in dollars, as currency exchange rates can be highly volatile. Therefore, choice B is the most accurate.

Foreign Financing Costs in a Single Foreign Currency ____ Financing