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Ideally, a profit oriented firm desires to denominate bonds in a currency that: ________.
a. Exhibits a low interest rate and is expected to depreciate.
b. Exhibits a high interest rate and is expected to depreciate.
c. Exhibits a low interest rate and is expected to appreciate.
d. Exhibits a high interest rate and is expected to appreciate.

Sagot :

Answer: exhibits a low interest rate and is expected to depreciate.

Explanation:

Bonds are the debt securities which are issued by the governments or corporations, and usually have a lower risk and reward than stocks.

A profit oriented firm desires to denominate bonds in a currency that exhibits a low interest rate and is expected to depreciate.

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