单选题
Consider the following borrowing rates for Company Z and Company W Firm German mark rate French franc rate Company Z 5.25% 6.5% Company W 4.75% 7% Given the borrowing rates above, Companies Z and W wish to enter into a plain vanilla currency swap. Which company should borrow French francs as a part of the swap? A. Company Z because it can borrow francs at a lower interest rate. B. Company Z because it can borrow marks at a lower interest rate. C. Company W because it can borrow francs at a lower interest rate.
【正确答案】
A
【答案解析】Since Company Z can borrow French francs at a lower interest rate than can Company W, Company Z has the comparative advantage Company Z, then, should borrow French francs.