D (TRUE or FALSE?) When inventory is used for collateral, the borrowing firm often sets aside the accounts receivable that has been identified for collateral in a separate warehouse and when the accounts receivable is sold, the cash received is forwarded to the lender in payment for the loan. True O False Question 12 Which of the following statement is correct? 1 pts The law of comparative advantage says that countries (and individuals) should not do that which they do best and settle to the second best. O All the answers are incorrect. 4 O Like any other market, the foreign exchange market is influenced by logical and illogical factors alike. O The absolute purchasing power parity theory posits that exchange rates are determined by the differences in the prices of a given market basket of traded goods and services when there are significant trade barriers. By agreeing to a forward, futures, or swap contract, an MNC cannot protect against a loss that will occur if the feared change in exchange rate occurs