International Investing

question 16

Multiple Choice

International investing

• A) Should not involve with foreign derivative securities
• B) Should stick to operations such as precious metals mining
• C) Should choose countries with low correlations
• D) Should hedge currency exposures
• E) Should get financing from the home country

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Definitions:

Paper Currency

Money in the form of paper notes issued by the government or central bank, representing a legal tender for transactions.

Medium of Exchange

A medium of exchange is a system or object that is widely accepted as payment for goods and services.

Transaction Costs

The expenses incurred when buying or selling goods or services, including costs of gathering information, negotiating, and enforcing contracts.

Double Coincidence of Wants

A condition for trade in a barter system where two parties each desire what the other has to offer.