All of the Following Actions Result in Equity Capital EXCEPT

question 58

Multiple Choice

All of the following actions result in equity capital EXCEPT

• A)issuing bonds.
• B)liquidating assets.
• C)issuing stock.
• D)reinvesting earnings.

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Definitions:

Open Market

A marketplace with few restrictions on entry or trade, allowing goods and services to be bought and sold freely.

Bonds

Fixed-income investments representing a loan made by an investor to a borrower, often used by companies or governments to finance projects or operations.

Reserve Ratio

The fraction of deposits that a bank holds as reserves, either in its own vaults or at the central bank, affecting the bank's capacity to issue new loans.

Money Supply

The sum of all financial resources in the form of cash, coins, and bank account balances present in an economy at a certain time.