31. In firm because t theory, the MNE should support their cash flows are debt ratios than a purely domestic a. lower, more stable due to international diversification b. lower, less stable due to international diversification c. higher, more stable due to international diversification d. higher, less stable due to international diversification 32. Tropika plantation and processing plant. If the interest rate is 7.00% per year and the Euro appreciates against the dollar from $1.15/ at the time the loan was made to $1.20 at the end of the first year, how much interest and principle will TropiKana pay at the end of the ana Inc. has just borrowed 1,000,000 to make improvements to an Italian fruit first year if they repay the entire loan plus interest (rounded)? a. $1,284,000 b. 1,284,000 c. $1,070,000 d. $891,667 33. A is a bond underwritten by a syndicate from a single country, sold within that country, denominated in that country's currency, but the issuer is from outside that country a. Foreign bond b. Eurobond c. Domestic bond d. None of the above 34. A. United States firm has chosen to deposit money in a British bank and have it denominated in U.S. dollars. This is an example of a (an)deposit. a. impounded b. Euroyern C. d. Eurodollar 35. You have been hired as a consultant to the central bank for a country that has for many years suffered from repeated currency crises and depends heavily on the US. financial and product markets. Which of the following policies would have the greatest effectiveness for reducing currency volatility of the client country with the United States? a. Dollarization b. An exchange rate pegged to the U. S. dollar c. An exchange rate with a fixed price per ounce of gold. d. An internationally floating exchange rate