Which of the Following Ratios Is Used in the Calculation

question 16

Multiple Choice

Which of the following ratios is used in the calculation of the multinationality index (MNI) ?

• A) Foreign working capital to total working capital
• B) Foreign cash to total cash
• C) Foreign employment to total employment
• D) Foreign loans to total loans

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Definitions:

Legal Reserve

The minimum amount of funds that a bank or financial institution must hold in reserve against deposits, as mandated by regulatory authorities.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a relatively safe investment.

Vault Cash

Paper currency and coins held by a bank in its vault and used to satisfy demands for withdrawals or to resolve deficits in reserve accounts.

Federal Securities

Financial instruments issued by the federal government, such as treasury bills and bonds, used to raise funds for governmental expenditures.