Other things being equal, a blocked funds restriction is more likely to have a significant adverse effect on a project if the currency of that country is expected to ____ over time, and if the interest rate in that country is relatively ____.
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ANSWER : a) depreciate, low
The basic reason for above answer is that when a currency depreciates where the project is going on, it will have less amount available in terms of its own country's currency. Secondly, as rate of interest is low, so the depreciation of currency will not be offset by that and as funds earn less than what it required, the overall value of the project decreases. (Thumbs up please)
Other things being equal, a blocked funds restriction is more likely to have a significant adverse...