ABB Bank is a financial corporation located in England and uses euro as its official currency. The company borrows 1 million U.S. dollars from a bank based in United States. ABB will be at a disadvantage if ____.

ABB Bank is a financial corporation located in England and uses euro as its official currency. The company borrows 1 million U.S. dollars from a bank based in United States. ABB will be at a disadvantage if ____. 












A. Euro appreciates against all currencies

B. U.S. dollar appreciates against Euro

C. U.S. dollar depreciates against Euro

D. fixed exchange rates are used for the transaction














Answer: C


International Business

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