Which of the Following Is True of American Depository Receipts

question 22

Multiple Choice

Which of the following is true of American Depository Receipts (ADRs) ?

• A) Investors who buy ADRs have to pay a currency-conversion fee.
• B) There is a minimum purchase requirement for ADRs.
• C) Companies offer ADRs in the U.S. to appeal to mutual funds.
• D) ADRs are listed and traded in London and Luxembourg.

---

Definitions:

Cash

Money in the form of currency, such as banknotes and coins, which is used for transactional purposes.

Property

A broad term encompassing ownership rights over goods, land, intellectual property, and other tangible or intangible assets.

RUPA

The Revised Uniform Partnership Act, which is a set of laws designed to govern the operation of partnerships in the United States.

Exclusivity

A contractual agreement where one party grants another party sole rights regarding a specific business function, product, or service.