The Foreign Corrupt Practices Act (FCPA)

question 26

Multiple Choice

The Foreign Corrupt Practices Act (FCPA) :

• A)attempts to persuade other nations to adopt U.S.rules regarding payments to officials.
• B)allows U.S.firms to make payments to facilitate the performance of normal duties.
• C)allows U.S.firms to prosecute foreign nationals on bribery charges.
• D)allows U.S.firms to make payments to facilitate normal duties and to make payments to obtain special advantages.
• E)allows foreign nationals to offer payments to U.S.government officials to expedite trade agreements.

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Definitions:

Diversification Benefits

The reduction in investment risk that is achievable by holding a variety of different investment instruments that have low correlation with each other.

Characteristic Line

A line generated in a statistical chart that shows the relationship between the returns on a security or portfolio and the returns on the overall market.

Market Index

A statistical measure that tracks the performance of a group of stocks, representing a portion of the overall market.

Correlation Coefficient

An analytical tool that determines the magnitude of association between the fluctuations of two interrelated variables.