Practice Quiz

FINRA Series 6

Category - Series 6

Start a Study Session Sign up for Question of the Day
The difference between an international fund and a global fund is:
  1. an international fund invests in both domestic and foreign securities while a global fund invests only in foreign securities.
  2. a global fund has more currency risk exposure than an international fund.
  3. an international fund invests only in stocks of foreign companies whereas a global fund invests in both stocks and bonds of foreign companies.
  4. None of the above is a true statement.
Explanation
Answer: D - None of the choices is a true statement. An international fund is one that invests only in foreign securities, while a global fund also invests in domestic (i.e., U.S.) securities. Because of this, it would be the international fund that has more currency risk exposure. Both types of funds may invest in stocks and bonds.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz