16. Level III ADRs: A. Track the Morgan Stanley Capital International index B. Can only be traded on exchanges outside the US C. Do not have to register with the SEC, but must comply with US GAAP D. Cannot engage in Public Offering E. None of the Above 17. ADRs: 3 A. Are receipts issued by a bank verifying that foreign company shares have been placed on deposit B. Issue dividends in US dollars C. May be sponsored or non-sponsored D. All of the Above E. A and B only 18. Foreign Direct Investment (FDI) takes one or more of the following forms: A. Exporting to many countries around the world and generating significant revenue from these exports B. Adding securities from many countries to a well-diversified portfolio C. Acquisition of a foreign company D. Importing AND Exporting to many countries and generating significant revenue from BOTH imports and exports E. All of the Above 19. According to the authors, diversifying cash flows internationally may help MNEs reduce the variability of cash flows because: A. of a lack of competition among international firms. B. of an offset to cash flow variability caused by exchange rate variability. C. returns are perfectly correlated between countries. D. none of the above 20. The US has proposed replacing LIBOR with: a. New LIBOR (NLIBOR) b. Secured Online Financing Rule (SOFR) c. Secured Overnight Financing Rate (SOFRA) d. Standard Overnight Federal Rule (SOFRU) e. Syracuse Overnight Federal Tax (SOFT)