International Reserves Are

question 80

Multiple Choice

International reserves are

• A)assets denominated in a foreign currency and used in international transactions.
• B)reserves the Fed requires banks to hold against Eurodollar deposits.
• C)reserves the International Monetary Fund requires banks to hold if they wish to participate in the market for foreign exchange.
• D)central bank holdings of gold.

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Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without having to increase leverage or equity financing.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity.

Fixed Assets Investment

Expenditures related to acquiring or improving long-term assets such as property, plant, and equipment that will be used in business operations.

Debt-Equity Ratio

The ratio demonstrating the proportionate role of debt and equity in a company's asset financing scheme.