Which One of the Following Statements Is True

question 9

Multiple Choice

Which one of the following statements is true?

• A)Global investments must be evaluated just like other investment alternatives.
• B)Since global investments can only be bought in the U.S. ,there is no need to worry about currency exchange rates.
• C)Today,very few investors are investing in stocks and bonds issued by foreign firms or in global mutual funds.
• D)For most small investors,it makes more sense to invest in stocks and bonds issued by individual foreign firms,rather than in global mutual funds.
• E)Evaluating global investments is easy because there is plenty of good information availablE.

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Definitions:

Nondiscriminating

A term used in various contexts to describe actions or policies that apply uniformly to all members of a group without exceptions based on any specific characteristics.

Pure Monopolist's Demand Curve

Represents the market demand curve since the monopolist is the sole provider of the product or service, hence facing the market demand directly.

Inelastic

Describes demand that does not significantly change with a change in price.

Natural Monopoly

A market structure where a single supplier efficiently provides all the goods or services due to high fixed or start-up costs, making it impractical for multiple firms to operate.