One Issue to Consider When Investing in Assets in Foreign

question 59

Multiple Choice

One issue to consider when investing in assets in foreign countries is:

• A) that local currency may weaken to the dollar causing adverse effects on the investment's return.
• B) that the dollar may weaken to the local currency causing adverse effects on the investment's return.
• C) that local currency may be difficult to exchange into dollars causing problems in receiving a return on the investment.
• D) that dollars may be difficult to exchange into local currency causing problems in receiving any return on investment.

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Definitions:

Jellylike Material

A substance with a gelatinous texture, often used in various medical and biological contexts to describe the consistency of certain cellular components or materials.

Spherical Shape

A three-dimensional round shape, where every point on the surface is equidistant from the center.

Eyeball

The spherical part of the eye in vertebrates, housed in the socket and responsible for vision.

Watery Fluid

A liquid substance that is clear and similar in composition and appearance to water, often found in bodily tissues and spaces.