Which of the Following Is Not an Example of Indirect

question 22

Multiple Choice

Which of the following is not an example of indirect investment by a household?

• A) Investment in a mutual fund's shares
• B) Investment in an original offering of corporate securities
• C) Investment in life insurance
• D) A savings deposit in a commercial bank

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Definitions:

Translation Loss

A decrease in the value of foreign currencies held by a company because of changes in exchange rates, affecting the financial statements when consolidating.

Expropriates

The action of a government taking privately owned property, usually without fair compensation.

Multinational Firm

A company that operates in multiple countries, utilizing a global strategy to manage its operations and market its products or services.

True Value

The actual, inherent value of an asset, not influenced by market movements, speculation, or other external factors.