Which of the Following Is NOT an Advantage of ADRs

question 37

Multiple Choice

Which of the following is NOT an advantage of ADRs to U.S. shareholders?

• A) Transfer of ownership is done in the U.S. in accordance with U.S. laws.
• B) In the event of the death of the shareholder, the estate does not go through a foreign court.
• C) Settlement for trading is generally faster in the United States.
• D) All of the above are advantages of ADRs.

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Definitions:

Private Investment

Expenditure on capital by private sector firms or individuals, not including governmental spending.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by the rise in GDP.

Government Borrowing

The process by which a government obtains funds from the private sector or other countries, typically through issuing securities.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.