Which of the Following Is an Example of U

question 165

Multiple Choice

Which of the following is an example of U.S.foreign direct investment and by itself increases U.S.net capital outflow?

• A)A Swedish bank buys a bond issued by the U.S.government.
• B)A German company builds a car factory in the U.S.
• C)A U.S.mutual fund purchases stock issued by a corporation in Bolivia.
• D)A U.S.grocery chain builds and operates a new warehouse in Honduras.

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Definitions:

Insurable Interest

A principle requiring a person to have a legitimate financial or other interest in the life, property, or well-being of the insured subject, to obtain insurance for it.

Property Insurance

Insurance that provides protection against most risks to property, such as fire, theft, and some weather damage.

Consideration

The value (such as money, a service, or a promise) that is given by one party to another in exchange for something else, forming a necessary component of a legally binding contract.

Premium

The amount paid for an insurance policy.