Which of the Following Is Not True Regarding ADRs

question 91

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:

Scheduled Dose

The prescribed timing and frequency at which medicine or treatment should be taken or administered.

Gastric Ulcer

A type of peptic ulcer that forms in the lining of the stomach, causing pain, indigestion, and other symptoms.

Allergy

A hypersensitive response of the immune system to substances that are generally harmless, such as pollen, foods, or dust.

Respiratory Depression

A decrease in the rate and depth of breathing, leading to inadequate ventilation and potentially dangerous levels of carbon dioxide in the blood.