International Reserves Allow a Country to Finance Disequilibria in Its

question 29

True/False

International reserves allow a country to finance disequilibria in its balance-of-payments position.

---

Definitions:

Stock Splits

A company activity where existing shares are split into more shares to increase share liquidity without changing the overall market value.

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the nominal value of a share.

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Tender Offer

An offer made directly to shareholders, proposing to purchase their shares at a specified price above market value.