Each of the Following Is Listed by Your Authors as a Constraint

question 38

Multiple Choice

Each of the following is listed by your authors as a constraint on repositioning funds by an MNE EXCEPT:

• A)political constraints.
• B)tax constraints.
• C)transaction costs.
• D)All of the above are listed by your authors.

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Definitions:

Required Reserves

The minimum amount of reserves that banks are required to hold by law, as a safeguard against bank runs.

Demand Deposits

Bank account balances that can be withdrawn on demand without any notice, such as in checking accounts.

Credit Availability

The ease with which individuals and businesses can obtain loans or credit, often influenced by interest rates and economic policies.

Price Level

A measure of the average prices of goods and services in an economy at a given time.