A "Foreign Bond" Issue Is

question 74

Multiple Choice

A "foreign bond" issue is

• A)one denominated in a particular currency but sold to investors in national capital markets other than the country that issued the denominating currency.
• B)one offered by a foreign borrower to investors in a national market and denominated in that nation's currency.
• C)for example, a German MNC issuing dollar-denominated bonds to U.S. investors.
• D)both b and c

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Definitions:

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and in a given period.

Real Exchange Rate

Measures the value of goods in one country compared to those in another, adjusting for price level differences.

Net Exports

The value calculated by subtracting a country's total value of imports from its total value of exports, which reflects a country's external trade balance.

Foreign-Currency Exchange

The process of exchanging one currency for another, determining how much one currency is worth in terms of another.