Which of the Following Statements Is NOT Accurate

question 22

Multiple Choice

Which of the following statements is NOT accurate?

• A)A fundamental disequilibrium can result in a one-way speculative gamble.
• B)An ongoing disequilibrium in the foreign exchange market can be sterilized by keeping official reserve holdings steady.
• C)Fundamental disequilibrium calls for a persistent series of interventions.
• D)The value of the foreign currency declines if a country revalues its own currency.

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Definitions:

Stock Dividend

A distribution of additional shares of a company's stock to shareholders instead of cash payouts, based on the number of shares they already own.

Retained Earnings

These are profits that a company has earned to date, less any dividends or other distributions paid to investors.

Equity Financed

Refers to the method of raising capital by selling company shares to investors.

Market Price

The current value at which an asset or service may be traded in a public market.