Question about currency drop rate penalty

I would like to confirm a couple of things here.

From what I understand, for area level below 66, there is a -2.5% drop rate penalty on currency items for each level. So, say I'm farming Docks (Merciless), 3 levels below the cut off, it will have a total penalty of 3 x -2.5 = -7.5%, and this figure remains the same no matter how high our character level is. Is this correct?

Secondly, if I have 10% Increase Item Quantity stat, will it directly offset that penalty?
That is, 10 - 7.5 = 2.5%. So that way, I can do away with any orb drop rate penalty (in Docks) by simply having 10% IIQ?

Thanks