All of the following statements are true of FDI EXCEPT:
A. it is the financial process by which a corporation takes partial or total control of foreign assets.
B. it is measured as the dollar value of funds invested by a parent corporation.
C. it is a short-term investment that can be sold anytime.
D. it is almost always made by transnational corporations.
Answer: C. it is a short-term investment that can be sold anytime.
You might also like to view...
Which of the following statements is true about the federal court system?
A) Appeals of benefits decisions made by the Veterans Administration are heard only by the Federal Circuit Court of Appeals. B) Appeals from administrative agencies are heard only by the Federal Circuit Court of Appeals. C) Bankruptcy cases must be filed under trial courts of limited jurisdiction. D) The U.S. Supreme Court only hears appeals in the federal system.
Which of the following statements is FALSE?
A) All investors should demand the same efficient portfolio of securities in the same proportions. B) The Capital Asset Pricing Model (CAPM) allows corporate executives to identify the efficient portfolio (of risky assets) by using knowledge of the expected return of each security. C) If investors hold the efficient portfolio, then the cost of capital for any investment project is equal to its required return calculated using its beta with the efficient portfolio. D) The CAPM identifies the market portfolio as the efficient portfolio.