Some Nations Establish Limits on the Amount of Earned and Invested

question 29

Multiple Choice

Some nations establish limits on the amount of earned and invested funds that can be withdrawn from it.These exchange controls are usually established by nations that:

• A)have a high trade surplus.
• B)are a part of larger trade agreements.
• C)are experiencing balance-of-payment problems.
• D)have an open economy.

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Definitions:

Issued

Refers to the number of shares or bonds that have been allocated or sold to investors by a company or government entity.

Preferred Stock

Preferred stock is a class of stock that typically provides a fixed dividend and has precedence over common stock in the distribution of assets in the event of a company's liquidation.

Common Stock

Common Stock represents ownership shares in a corporation, providing voting rights and entitling the shareholder to a share of the company's profits through dividends.