Limits on the Flow of Foreign Exchange and Financial Investment

question 13

Multiple Choice

Limits on the flow of foreign exchange and financial investment across countries are called

• A)capital controls.
• B)fixed exchange rates.
• C)credit constraints.
• D)currency restrictions.

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Definitions:

External Equity

Refers to funds raised from outside the company, typically through issuing new shares to investors.

External Financing

Funds raised from outside the business, including bank loans, equity investments, and bond issues.

Dividend Payout

The portion of the company's earnings paid out to shareholders, usually in the form of dividends.

Sales Growth

This metric measures the increase in sales revenue over a specific period, indicating the business's ability to grow its operations and revenue.