Which of the Following Statements Regarding American Depositary Receipts (ADRs)

question 26

Multiple Choice

Which of the following statements regarding American Depositary Receipts (ADRs) is true?

• A) ADRs are traded only in foreign exchanges.
• B) ADRs are denominated in foreign currencies.
• C) ADRs represent a stated number of shares in a specific foreign company.
• D) The investors in ADRs receive annual interest amounts in dollars.
• E) The investors in ADRs receive dividends in foreign currencies.

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Definitions:

Legitimate Interests

Interests that do not violate others’ similar and equal interests.

Ethical Subjectivist

One who believes that morality is nothing more than personal opinion or feelings.

Tolerant

Showing willingness to allow the existence of opinions or behavior that one does not necessarily agree with.

Moral Reasoning

Used when a decision is made about what we ought or ought not to do.