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NEW QUESTION: 1
The difference between an international fund and a global fund is:
A. an international fund invests in both domestic and foreign securities while a global fund invests only in
foreign securities.
B. None of the above is a true statement.
C. a global fund has more currency risk exposure than an international fund.
D. an international fund invests only in stocks of foreign companies whereas a global fund invests in both
stocks and bonds of foreign companies.
Answer: B
Explanation:
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.