If a Household Invests in Corporate Securities and Does Not

question 63

True/False

If a household invests in corporate securities and does not supervise how the funds are invested or used by the corporation, the risk of not earning the desired return or not having the funds returned increase.

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Definitions:

Heckscher-Ohlin Theory

An economic theory that suggests countries export what they can most efficiently and abundantly produce.

Absolute Advantage

The ability of a country, company, or individual to produce a good or provide a service more efficiently than competitors.

World Trade Organization

An intergovernmental organization that regulates international trade by providing a framework for negotiating trade agreements and resolving disputes between its member countries.

Trade Agreements

Treaties between two or more nations that outline the terms and conditions of trade between them, possibly including tariffs, quotas, and other trade restrictions.