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