Why would foreign participants borrow from U.S. financial markets? a) They look for the cheapest source...
Why would foreign participants borrow from U.S. financial markets?
a) They look for the cheapest source of funds.
b) They look at the economic conditions of their home country.
c) All of these choices are correct.
Homework Answers
Sol :
Foreign participants would borrow from U.S . financial markets
a) They look for the cheapest source of funds -> Yes, this choice is correct because interest rates in the advanced countries are very low. It is considered as the cheapest source of raising money.
b) They look at the economic conditions of their home country -> Yes, it is correct because the debts market of their home country are not sufficient enough to meet their borrowing needs.
c) Yes both the choices are correct . As the borrowing from the foreign market is important choice because of having favourable or cheaper or attractive lending rates along with the flexible repayment schedules.
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