A Centralized Depository Benefits the Firm Primarily By

question 57

Multiple Choice

A centralized depository benefits the firm primarily by:

• A)reducing the cost of repatriating funds.
• B)positioning profits where taxes are lowest.
• C)reducing the total amount of capital employed within the total firm.
• D)earning a higher rate of return than in domestic banking deposits.

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Definitions:

Discretionary Fiscal Policy

It involves government policy changes in taxation and spending designed to influence economic activity, typically to counteract inflation or deflation and stabilize the economy.

Nominal Output

The total value of goods and services produced by an economy, measured in current prices without adjusting for inflation.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Discretionary Fiscal Policy

Government strategy that includes altering its expenditure and taxation levels to oversee and impact a country's economic conditions.