______ from the Subsidiary to the Parent Is Still the MOST

question 6

Multiple Choice

______ from the subsidiary to the parent is still the MOST important method of transferring funds in the MNC.

• A)Parallel loans
• B)Leading and laggng
• C)Dividends
• D)Credit rationing

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Definitions:

Money Neutrality

The concept that changes in the money supply only affect nominal variables in the economy, such as prices, wages, and exchange rates, but not real variables like employment or real GDP.

Money Supply

The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation within an economy at a specific time.

Real GDP

The total value of all goods and services produced within a country in a specific period, adjusted for inflation, reflecting the actual growth in economic performance.

Shoeleather Costs

The metaphorical term for the increased costs of transactions, including time and effort, caused by inflation.