An Economy That Has Interactions in Trade or Finance with Other

question 247

Multiple Choice

An economy that has interactions in trade or finance with other economies is referred to as

• A)an open economy.
• B)a closed economy.
• C)a trade-balanced economy.
• D)a net foreign investment economy.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given period, and must be paid out before common shareholders can receive dividends.

Noncumulative Preferred Stock

A type of preferred stock where dividends are not accumulated if they are not declared.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.