Question

What is NOT a reason for investors' interest in ADRs?

a.

Diversification of investment portfolio

b.

Easy trading and settlement of ADRs

c.

Restrictions in holding foreign securities

d.

Minimum or no currency risks

Answer: (c).Restrictions in holding foreign securities Explanation:Investors are attracted to ADRs because of minimum or no currency risks, not restrictions in holding foreign securities.

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Q. What is NOT a reason for investors' interest in ADRs?

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