The Term "Global Capital Structure" Is Used in the Text

question 50

Multiple Choice

The term "global capital structure" is used in the text to represent the:

• A) average capital structure of all MNCs across countries.
• B) average capital structure of all domestic firms across countries.
• C) capital structure of a subsidiary of a particular MNC.
• D) capital structure of a particular MNC overall (including all subsidiaries).

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Definitions:

Money Supply

represents the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.

Interest Rates

The financial charge, calculated as a fraction of the principal, imposed by a lender on a borrower for asset use.

Monetary Multiplier

The ratio of the change in the money supply to the change in reserves, indicating the potential increase in money supply through the banking system.

Legal Reserve Ratio

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out, often set by central banks.