The Foreign Corrupt Practices Act

question 13

Multiple Choice

The Foreign Corrupt Practices Act:

• A) applies only to corporations registered under the federal Securities Exchange Act.
• B) makes it illegal to bribe U. S. and foreign officials.
• C) applies to U. S. corporations, whether reporting under the 1934 Act or not.
• D) applies only to foreign corporations bribing U. S. officials.

---

Definitions:

Foreign Currency Approach

Relates to the strategy for evaluating investments by considering the impact of foreign exchange fluctuations on investment returns.

Swedish Krona

The official currency of Sweden, which is divided into 100 öre and is denoted by the symbol SEK.

Absolute Purchasing Power Parity

The theory that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Exchange Rate

The price of one country's currency in terms of another currency.