Which of the Following Statements Is True About International Equity

question 58

Multiple Choice

Which of the following statements is true about international equity (stock) markets?

• A) Japanese households are large investors in common stock.
• B) Commercial banks are generally not involved in the international securities business.
• C) Some foreign investors are more risk-averse than their counterparts in Canada and prefer dividend income over less certain capital gains.
• D) Foreign exchanges never include the listing of Canadian firms.

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Definitions:

Perpetual Inventory System

A perpetual inventory system is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Gross Method

An accounting approach to recording purchases at their full invoice amount without deducting any cash discounts offered.

Merchandise Return

The process of a customer returning previously purchased goods to the seller, often due to defects or unsatisfaction, which may result in a refund or replacement.

Gross Method

An accounting method for recording purchases at the total invoice cost without deducting any cash discounts at the time of purchase.