Which one of the following statements is true for the centralized debt denomination model?
A) The debts for both the parent company and its foreign subsidiaries are denominated in the home currency of the parent company.
B) The debt service payments are denominated in the currency in which the subsidiary's revenues are received.
C) The debts for both the parent company and its foreign subsidiaries are denominated in the currency of the largest subsidiary.
D) The debt service payments are denominated in the currency in which the subsidiary's revenues are received which does not balance foreign assets against foreign liabilities.
Answer: A
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