Question

Which statement is true about how the global market affects the United States?

A- A bad derivatives trade executed by a foreign subsidiary of a Wall Street bank will affect layoffs overseas

B- A bad options trade executed by a foreign subsidiary of a Wall Street bank will affect layoffs overseas

C- American investors and fund managers make decisions based on financial reporting standards developed and financial statements audited overseas.

D- Foreign investors and fund managers make decisions based on financial reporting standards developed and financial statements audited overseas.

Answer 1

Solution :

Option A and option B are incorrect as it talks about the derivative and option trade and these are not directly related to layoffs .

Option C is correct as American investors and fund managers will look for financial reporting standards overseas as it will impact the investments decisions and return on the investment.

Option D talks about foreign fund managers and not about American. Hence this option is not correct in this context. .

Correct option is C )