Shortly After Their Admission into the EMU,Ireland and the Netherlands

question 100

Multiple Choice

Shortly after their admission into the EMU,Ireland and the Netherlands

• A)both seceded from the EMU.
• B)were expelled due to high levels of debt.
• C)breached the inflation convergence criterion that had qualified them for admission to the EMU in the first place.
• D)achieved inflation rates of zero percent.
• E)abandoned the Euro as their national currency.

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Definitions:

Indirect Method

A technique used in financial reporting to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Investment Bankers

Financial professionals who assist corporations and governments in raising capital by underwriting and issuing securities and advising on mergers and acquisitions.

Financial Intermediation

The process by which financial institutions act as intermediaries between lenders and borrowers.

Institutional Investor

A business organization that buys and sells securities. Generally, a fund of some kind such as a mutual fund or a pension fund that invests the pooled money of its clients.