The "Globalization of Finance" in Relatively Recent Years

question 21

Multiple Choice

The "globalization of finance" in relatively recent years

• A) is an entirely new phenomenon in the world economy.
• B) is not an entirely new phenomenon because a similar expansion of financial flows Occurred in the world economy in the 1930s.
• C) is not an entirely new phenomenon because a similar expansion of financial flows Occurred in the world economy in the 1870-1914 period.
• D) has been primarily associated with the flow of foreign direct investment across Country borders rather than with growth in financial flows such as international Bank lending.

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Definitions:

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which often bears no relation to its market value.

Treasury Stock

Refers to shares that were issued by a company and later repurchased. These shares do not pay dividends, have no voting rights, and are not included in shares outstanding calculations.

Foreign Currency Translation

Foreign currency translation is the process of converting the financial statements of a company from its functional currency into another currency for reporting purposes.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing the ownership interest.