Portfolio investment is defined as
A) the purchase of less than 40 percent of the shares of ownership in a company in another country.
B) the acquisition of more than 40 percent of the shares of ownership in a company in another country.
C) the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum.
D) none of the above
D
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The fiscal shock in Germany due to reunification caused the Bundesbank to pursue a monetary policy that:
A) was appropriate for Britain, since it had experienced a similar shock. B) was appropriate for all the other ERM nations but not Britain. C) was appropriate only for Germany, since neither Britain nor other ERM nations experienced a similar shock. D) had poor timing, since the monetary action should have come before the reunification.
The largest budget deficit the U.S. federal government has ever had was
A) $3.9 trillion in 1975. B) $3.0 trillion in 2014. C) $1.4 trillion in 2009. D) $600 billion in 1997.