15.American Depositary Receipts are denominated in the currencies of the foreign countries where the corporations issuing these ADRs are registered.

a.

True

b.

False

The best approach to solve the problem of an annual budget deficit is to:

a.

liquidate more assets than required to meet the budget shortfall for the year.

b.

borrow funds on credit cards.

c.

reduce flexible expenditures on nonessential items.

d.

reduce fixed expenses.

e.

reduce high-priority expenses on the budget.

_____ is a reason that people use credit.

a.

Being able to increase disposable income

b.

Being able to provide payments for living beyond one's means

c.

Being able to afford impulse purchases

d.

Greater affordability for a luxurious lifestyle

e.

Being able to meet a financial emergency

.Compared to mutual funds, exchange traded funds (ETFs):

a.

are more cost-effective for investors with a short-term horizon.

b.

generate higher taxable gains.

c.

accommodate investors pursuing narrow market segments.

d.

are more diversified.

e.

have higher overhead expenses.