Something That Would Not Be Considered a Tool in Pursuit

question 45

Multiple Choice

Something that would not be considered a tool in pursuit of industrial policy would be:

• A) incentives for foreign portfolio investment.
• B) investment in research.
• C) incentives for foreign direct investment.
• D) All of these are examples of industrial policies.

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Definitions:

Investment-Banking Firm

A financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities.

Underwriting Syndicate

A group of investment banks that work together to issue new securities to the market, sharing the risk and responsibility of selling the offering.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses on trades.

Initial Margin

The minimum amount of capital required to open a new position in a securities account.