Capital Asset Pricing Theory Would Most Likely Suggest That the Cost

question 41

Multiple Choice

Capital asset pricing theory would most likely suggest that the cost of capital is generally ____ for ____.

• A)higher; MNCs
• B)lower; domestic firms
• C)lower; MNCs
• D)none of the above

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Definitions:

Traveler's Checks

A preprinted, fixed-amount check designed to allow the person signing it to make an unconditional payment to someone else as a result of its being counter-signed.

M2

A gauge of the total money available that encompasses physical currency, deposits in checking accounts, and near money assets like savings accounts and money market investments, which can be quickly converted to cash.

Savings Deposits

Accounts at banks or financial institutions where individuals can deposit their money to earn interest over time.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any notice to the bank.