Which of the following is not an external source of debt for an MNC?
A) a private placement of bonds
B) borrowing from a financial institution
C) a domestic bond offering
D) borrowing in the federal funds market

Question

Quizplus · Accepted Answer

Borrowing in the federal funds market is an interbank market in which banks and other financial institutions lend funds to each other overnight, and is not typically considered an external source of debt for an MNC. Choices A, B, and C are all external sources of debt for an MNC as they involve borrowing from outside parties or institutions.

Which of the Following Is Not an External Source of Debt