Risk Sharing Through Asset Trade Internationally Is Limited Because

question 73

Multiple Choice

Risk sharing through asset trade internationally is limited because:

• A) not all capital assets can be traded internationally, and the number of assets is comparatively small.
• B) laws prohibit many kinds of international investment.
• C) returns on international assets are usually lower.
• D) there is a larger risk of currency devaluation.

---

Definitions:

Bonds Payable

Long-term debt instruments issued by a company to borrow funds, where the company agrees to pay back the principal along with interest on specified dates.

Premium on Preferred Stock

The amount by which the issue price of preferred stock exceeds its par value, typically reflective of additional benefits such as higher dividends.

Subscriptions Receivable

The amount of money owed to a company for goods or services delivered or provided but not yet paid for by customers under a subscription model.

Accounting Practices

These are methodologies and standards used by accountants to track and report financial information.