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Consider two firms, Reliable Corp and Du...

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题目

Consider two firms, Reliable Corp and Dubious Corp. Reliable Corp has a strong balance sheet and repayment history; it can borrow 5.0% in fixed-rate loan markets or, in floating-rate markets Reliable can pay 40 basis points above six-month LIBOR. Dubious Corp has a weaker balance sheet and must pay 7.50% in fixed-rate loan markets or, in floating-markets Dubious must pay 310 basis points above six-month LIBOR.「huixue_img/importSubject/1564169525572800512.png」Which of the following statements is TRUE about this situation with respect to comparative advantage?

选项

A.Neither has a comparative advantage in either market.

B.Reliable has a comparative advantage in BOTH the fixed-rate and floating-rate markets.

C.Reliable has a comparative advantage in floating-rate markets, but Dubious has a comparative advantage in fixed-rate markets.

D.Reliable has a comparative advantage in fixed-rate markets, but Dubious has a comparative advantage in floating-rate markets.

答案

C

解析

Reliable has a comparative advantage in floating-rate markets, but Dubious has a comparative advantage in fixed-rate markets.Reliable在浮动利率市场上具有比较优势,而Dubious在固定利率市场上具有比较优势。