If you invest in a foreign company by buying 30 percent of its shares of stock, you have engaged in
A. foreign direct investment.
B. moral hazard.
C. portfolio investment.
D. adverse selection.
Answer: A
Economics
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The advantage of holding money as an asset is that
A) money earns interest. B) money is liquid. C) the value of money appreciates over time. D) money is safe from thievery.
Economics
Speculators profit by taking risks, while the actions of arbitrageurs involve no risk
a. True b. False
Economics
If a project has an initial investment of $20,000 and consecutive yearly cash inflows of $5,000, $8000, $10,000 and $7,000, respectively, what is its payback period?
A. 2 years B. 2.5 years C. 2.7 years D. 3 years
Economics
The money market is in equilibrium when there is no excess supply of or excess demand for bonds
a. True b. False
Economics