Certificates Representing Ownership in Stocks of Foreign Companies, Which Are

question 60

Multiple Choice

Certificates representing ownership in stocks of foreign companies, which are held in a trust bank located in the country the stock is traded are called _____.

• A) certificates of ownership
• B) foreign stock funds
• C) mutual funds
• D) American depository receipts
• E) investment bankers

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Definitions:

Legislation

Laws and statutes that are enacted by a legislative body through its legislative process.

Marginal Propensity

The portion of additional income that an individual spends on consuming goods and services, as opposed to saving.

Multiplier

An economic factor that quantifies the impact of a change in investment, government spending, or other economic variables on the overall economy, often leading to a multiple increase in income or output.

Liquidity Preference Theory

A theory suggesting that people prefer to hold their wealth in liquid form for ease of transactions and as a precaution against uncertainty, influencing interest rates.