Which of the Following Is Not True Regarding ADRs

question 48

Multiple Choice

Which of the following is not true regarding ADRs?

• A) ADRs are denominated in the currency of the stock's home country.
• B) ADRs enable U.S. investors to avoid cross-border transactions
• C) ADRs allow non-U.S. firms to tap into U.S. market for funds.
• D) ADRs sometimes allow for arbitrage opportunities.

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Definitions:

Sociometer Model

A theoretical model suggesting that self-esteem serves as an internal gauge of one's social acceptance or rejection.

Cognitive-dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Self-evaluation Maintenance Model

A psychological theory explaining how people's relationships with others influence their self-esteem and motivation.

Self-images

The mental picture one has of oneself, which can influence behavior, confidence, and self-esteem.