Which of the Following Statements Is Correct

question 50

Multiple Choice

Which of the following statements is correct?

• A)A corporation receives a monetary payment every time its shares of stock are traded by stockholders on organized stock exchanges.
• B)When a corporation sells bonds as a means of raising funds it is engaging in debt finance.
• C)A share of stock is an IOU.
• D)The two most important financial markets in the economy are the stock market and financial intermediaries.

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Definitions:

Foreign Exchange

The exchange of one currency for another or the global market where currencies are traded.

Exchange Rate

The value of one currency for the purpose of conversion to another currency.

Foreign Currency

Refers to the money or legal tender issued by a country that is not one's own, used to conduct transactions in foreign countries.

Exchange Rate

The price at which one currency can be exchanged for another.