Because the Value of the SDR Is Tied Directly to the Value

question 56

True/False

Because the value of the SDR is tied directly to the value of the U.S.dollar,a 10 percent dollar depreciation would result in a 10 percent decrease in the SDR's value.

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Definitions:

Ease of Formation

The simplicity with which a new business or organization can be legally established.

Treasury Stock

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Financing Activities

These pertain to transactions involving raising capital and repaying it to investors, including the payment of dividends, in the statement of cash flows.

Common Stock Cash Dividend

A payment made to shareholders out of a company's earnings, specifically to common stockholders.