Which of the Following Is an Example of a Foreign

question 98

Multiple Choice

Which of the following is an example of a foreign direct investment (FDI) flow?

• A) the purchase of a controlling interest in a foreign firm by a domestic firm
• B) the purchase of stocks or bonds directly from an international dealer
• C) the purchase of foreign government bonds by domestic investors
• D) accounts denominated in foreign currency in foreign banks owned by domestic depositors

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Definitions:

BTU Of Energy Consumption

A measure of energy consumption, the British Thermal Unit (BTU) quantifies the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit.

Energy Efficiency

The goal of using less energy to provide the same service or achieve the same outcome.

Time-Value Of Money

The idea that a specific amount of money is more valuable to a person the sooner it is received because the money can be placed in a financial account or investment and earn compound interest over time; the opportunity cost of receiving a sum of money later rather than earlier.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specified period of time.