Which of the Following Is an Example of U

question 216

Multiple Choice

Which of the following is an example of U.S. foreign portfolio investment?

• A)Joan, a U.S. citizen, buys bonds issued by a Swedish corporation.
• B)Russell, a U.S. citizen, opens a dairy in Italy.
• C)Both A and B are examples of U.S. portfolio investment.
• D)Neither A nor B are examples of U.S. portfolio investment.

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Definitions:

Liquidity

The ease with which assets can be converted into cash without significantly affecting their value, often essential for meeting short-term financial obligations.

Leverage

The use of borrowed capital or financial instruments to increase the potential return of an investment, or in business, the use of various techniques to maximize outcomes.

Ability to Generate Cash

The capacity of a business to convert activities or assets into liquid funds to meet short-term obligations and support operations.

Financial Strength

A term that refers to the financial stability and health of an organization, often assessed through metrics such as liquidity, solvency, and profitability.