Consider the Following: a Foreign Automobile Company Builds a Manufacturing

question 35

Multiple Choice

Consider the following: A foreign automobile company builds a manufacturing plant in Tennessee and European investors buy U.S. Treasury Bonds.

• A) Both activities would be considered direct investment.
• B) Both activities would be considered portfolio investment.
• C) The auto manufacturer in engaging in portfolio investment, and the European investors are engaged in direct investing.
• D) The auto manufacturer in engaging in direct investment, and the European investors are engaged in portfolio investing.

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Definitions:

Addiction

A chronic condition characterized by the compulsive use of substances or engagement in behaviors despite harmful consequences.

Substance

A form of matter with consistent properties and composition; can refer more broadly to material presence or subject matter under consideration.

Alcohol

A psychoactive substance found in beverages such as beer, wine, and spirits, known for its mood-altering effects and potential for addiction.

Obsessive-Compulsive Disorder

a mental health disorder characterized by repetitive, intrusive thoughts (obsessions) and compulsive behaviors performed to alleviate stress.