Sources of Business Finance · Class 11 · CBSE · Commerce Business Studies
Which source of finance involves raising capital from international markets where shares are denominated in US Dollars and issued outside India?
Practice question from Sources of Business Finance (Class 11 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
medium · MCQ · Q-59CF93
Which source of finance involves raising capital from international markets where shares are denominated in US Dollars and issued outside India?
- A.Commercial Banks
- B.Inter-corporate Deposits
- C.Global Depository Receipts (GDRs)Correct answer
- D.Trade Credit
Solution
Global Depository Receipts (GDRs) are negotiable instruments issued abroad by a depository bank, representing local company shares, allowing companies to raise funds in foreign currency.
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