Without the International Capital Flows, There Would Be ____ Funding

question 1

Multiple Choice

Without the international capital flows, there would be ____ funding available in the U.S. across all risk levels, and the cost of funding would be ____ regardless of the firm's risk level.

• A) more; lower
• B) more; higher
• C) less; lower
• D) less; higher

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Definitions:

Straight-Line

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Discontinued Item

A component of a company's operations that has been disposed of or is held for sale, and its earnings are separated out on the income statement.

MACRS

Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes in the United States that allows faster write-offs of assets.

Straight-Line

A method of calculating depreciation of an asset, which allocates an equal amount of depreciation to each year of the asset's useful life.