An Increase in Capital Inflows Will

question 176

Multiple Choice

An increase in capital inflows will

• A)increase net foreign investment.
• B)increase capital outflows.
• C)decrease capital outflows.
• D)increase the equilibrium exchange rate.

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Definitions:

Continuous

A term describing processes or functions that proceed without interruption or cessation.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be distributed to common stockholders.

Cumulative Preferred Stock

A type of preferred stock that entitles the holder to receive dividends in arrears before common stockholders can receive any dividends.

Liability

Any financial obligation or debt that an entity is responsible for paying to another party.