Examlex
The outer loop of the circular-flow diagram represents the flows of dollars in the economy.Which of the following does not appear on the outer loop?
Financial Asset
Any asset that is cash, an equity instrument of another entity, a contractual right to receive cash or another financial asset, or a contractual right to exchange financial instruments on potentially favorable terms.
Residual Ownership
The remaining interest or value that shareholders have in a company after all obligations and liabilities have been satisfied.
Legal Claims
Rights to seek redress or enforcement through legal action.
Preferred Stock
A type of equity security that has priority over common stock in the distribution of dividends and upon liquidation.
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