Nations Can Lower Risk Via Asset Diversification

question 125

Multiple Choice

Nations can lower risk via asset diversification. How do nations engage in diversification?

• A) by investors relying on mutual funds instead of choosing their own stocks
• B) by directing some investment activities abroad and some domestically
• C) by buying private insurance against devaluation
• D) by restricting all investment toward domestic capital

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Definitions:

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Self-Enhancement

The tendency for individuals to promote their self-image by focusing on positive feedback and minimizing negative feedback.

Culture

The shared beliefs, practices, norms, and values of a group of people that shape their behavior and perspectives.

Self-Presentation

The process by which individuals attempt to control the impressions others form of them in social or professional contexts.