Other Things Being Equal, a Smaller Quantity of U

question 58

True/False

Other things being equal, a smaller quantity of U.S. funds would be demanded by foreign governments and corporations if their domestic interest rates were high relative to U.S. rates.

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Definitions:

Noncumulative

A term often related to preferred stock, describing dividends that, if not declared by the board of directors, are not owed to shareholders and do not accumulate.

Preferred Stock

Preferred stock is a type of stock that gives holders preferential treatment over common stock, such as fixed dividends and priority in asset liquidation.

Par Value

The face value of a bond or stock as specified by the issuing corporation.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds, reducing the amount of outstanding stock on the market.