Investing in a Foreign Security Involves All of the Additional

question 39

Multiple Choice

Investing in a foreign security involves all of the additional risks EXCEPT that

• A) the currency in which the security is denominated will be removed from the international monetary gold standard
• B) the government of the foreign investment will impose capital controls
• C) the foreign securities market will not prove the necessary liquidity
• D) information about the investment will not be readily available

---

Definitions:

Insulation Job

A task or project aimed at applying materials to buildings or structures to prevent heat loss or gain, thereby improving energy efficiency.

Annual Fuel Bill

The total expense incurred for fuel consumption over the course of a year.

Interest Rate

The slice of a loan that incurs a charge as interest to the borrower, typically represented as an annual percentage of the remaining loan amount.

Zero Coupon Bond

A debt security that does not pay interest but is traded at a deep discount, offering profit at maturity when it is redeemed for its face value.