The following represents the inflation rates of foreign country X for the past 5 years:
Year 1: 35%
Year 2: 20%
Year 3: 25%
Year 4: 30%
Year 5: 15%
Which statement is correct about the selection of a functional currency for country X at the end of year 5.
a.
Country X is highly inflationary; the US dollar must be used
b.
Country X is highly inflationary; the foreign currency must be used
c.
Country X is not highly inflationary; the US dollar must be used
d.
Country X is not highly inflationary; either the US dollar or the foreign currency may be used depending on the factors to determine the functional currency
e.
Country X is not highly inflationary; the foreign currency must be used
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