Which of the following does NOT create a demand for Swiss francs? the repayment
ID: 1194989 • Letter: W
Question
Which of the following does NOT create a demand for Swiss francs?
the repayment of a loan from a Swiss company to an Italian bank
the desire of a British company to purchase a Swiss factory
the declaration of a dividend by a Swedish company that has Swiss shareholders
the rise of the interest rate in Switzerland while other foreign interest rates remain constant
the repayment of a loan from a Swiss company to an Italian bank
the desire of a British company to purchase a Swiss factory
the declaration of a dividend by a Swedish company that has Swiss shareholders
the rise of the interest rate in Switzerland while other foreign interest rates remain constant
Explanation / Answer
The following transaction does not create a demand for Swiss Frans:
the repayment of a loan from a Swiss company to an Italian bank
Because the repayment of a loan is made by Swiss compnay to an Italian bank which would be in italian currencey hence here no demand for Swiss Francs created.