Capital flIght from the DVCs May Be Caused by

question 227

Multiple Choice

Capital flight from the DVCs may be caused by

• A) a fear of government privatization efforts.
• B) slow domestic inflation.
• C) low rates of domestic taxation.
• D) risks of severe fluctuations in exchange rates.

---

Definitions:

GAAP

Generally Accepted Accounting Principles (GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting and auditing in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that aims to ensure consistency and transparency in financial reporting globally.

Unrealized Declines

Reductions in the estimated market value of an investment that has not yet been sold by the holder.

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation after deducting liabilities, representing ownership equity spread amongst shareholders.