Which of the Following Statements Is NOT CORRECT

question 68

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) Any bond sold outside the country of the borrower is called an international bond.
• B) Foreign bonds and Eurobonds are two important types of international bonds.
• C) Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.
• D) The term Eurobond applies only to foreign bonds denominated in U.S.currency.
• E) A Eurodollar is a U.S.dollar deposited in a bank outside the U.S.

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Definitions:

Compensation Cost

The total amount of monetary and non-monetary payments made to employees for their work or services.

Contributed Capital

Funds that investors provide to a company in exchange for equity, including the value of stock plus any additional paid-in capital.

Stock Option Plan

A compensation scheme in which employees are given the option to purchase company stock at a discounted price, intended to align their interests with those of the company's shareholders.