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- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
Equity represents the residual interest in a business or property after deducting any mortgage or liabilities. Which of the following are also encompassed by the term equity?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
Equity includes both the market value of assets after subtracting liabilities, including common and preferred stock, and the funds a business obtains by selling its shares. Therefore, both A and B are correct.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Under what condition can two nations benefit from engaging in international trade?
- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?