Negotiable certificates issued by a U.S. bank in the United States to represent the underlying shares of stock, which are held in a trust at a custodian bank in a foreign country, are called ______.
A. SDRs
B. FDRs
C. IOUs
D. ADRs
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Other things equal, a firm would rather have ________ in a depreciating currency, and ________ in an appreciating currency.
A. accounts receivable; accounts receivable
B. accounts receivable; accounts payable
C. accounts payable; accounts receivable
D. none of the abov
If your company were to import and export textiles, the transactions would be recorded in the current account subcategory of____________.
A. services trade
B. income trade
C. goods trade
D. current transfers
One of the most important factors in making debt less expensive than equity is______.
A. the tax deductibility of dividends
B. the tax deductibility of interest
C. the tax deductibility of depreciation
D. the tax deductibility of equity
Which of the following is a key variable in the equation for the capital asset pricing model?
A. The risk-free rate of interest
B. The expected return on the market portfolio
C. The firm's beta
D. All are important components of the CAPM