Foreign Direct Investment Includes

question 272

Multiple Choice

Foreign direct investment includes:

• A) the purchase of U.S.stocks by foreigners.
• B) the purchase of U.S.bonds by foreigners.
• C) spending on construction of a new plant by foreigners in the United States.
• D) spending on U.S.-produced goods by foreigners.

---

Definitions:

Observable Inputs

Inputs that are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use when pricing the asset or liability.

Level 2 Input

In fair value measurement, inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, such as using market-correlated data.

Level 2 Input

Inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, directly or indirectly, such as quoted prices for similar assets or liabilities.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.