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LOS h: Discuss the barriers to international investments and their impact on international investors.
Q1. Which of the following statements regarding foreign security markets, relative to U.S. security markets is FALSE?
A) Withholding taxes are often assessed.
B) Trading costs are usually higher.
C) Insider trading is more vigorously enforced.
Q2. Which of the following statements regarding foreign security markets, relative to U.S. security markets is FALSE?
A) Management fees are usually higher due to the costs of data, research, accounting, and communication.
B) Government restrictions are usually higher for bonds than for stocks.
C) Financial reporting is usually less reliable.
Q3. Which of the following is NOT a barrier to investing in foreign security markets?
A) The high commissions in foreign bond markets.
B) Management fees are usually higher in foreign countries.
C) There is often a lack of familiarity with foreign markets.
Q4. Which of the following is NOT a reason why foreign markets have less liquidity than domestic markets?
A) The market capitalization is lower in foreign markets.
B) There are government restrictions on the amount of equity that institutions can hold.
C) The turnover of foreign stock markets is higher due to price manipulation. | 
发表于 2009-3-5 16:57
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