Which of the Following Is NOT a True Statement About

question 8

Multiple Choice

Which of the following is NOT a true statement about capital controls?

• A)Countries are more able to prevent capital inflows than they were in the 1970s.
• B)Capital controls may reduce world welfare by preventing capital from moving to its most valuable use.
• C)It is unclear whether it is best to limit capital inflows, capital outflows, or both.
• D)Restricting the movement of capital cannot stop a crisis once it has begun.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its face value.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, which can include payments on debts, loans, or credit lines.

Interest Payable

The amount of interest on borrowed funds that a company owes to its creditors but has not yet paid.