Sable Inc., a U.S. based company, owns a majority interest in Blau Company, a European subsidiary. Which of the following would be an indicator that Blau's functional currency is the U.S. dollar?

Multiple Choice

• Blau hires its employees from the local labor market.

• Blau purchases the majority of its raw materials from Sable.

• Sales prices for Blau's products are determined by local economic conditions.

• Blau finances its capital expenditures using its local finance markets.