Between 1981 and 1988, What Happened to Canadian Net Capital

question 184

Multiple Choice

Between 1981 and 1988, what happened to Canadian net capital outflow as a percent of GDP?

• A) It became a larger, positive number.
• B) It became a smaller, positive number.
• C) It became a larger, negative number.
• D) It became a smaller, negative number.

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Definitions:

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments, analyzing the cash inflows and outflows to determine whether the returns meet a sufficient target benchmark.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which finances its overall operations and growth.

Net Working Capital

It represents the disparity between an organization's short-term holdings and debts, signifying the state of its financial wellbeing and efficiency in operations.

Dealer

An individual or firm in the financial markets that buys and sells securities for their own account, rather than on behalf of clients.