International Finance and Investment Quiz

Buying an ETF from the U.S. is:

• FDI

• Portfolio Investment

Importing products in dollars faces what risk?

• Transaction Risk

• Translation Risk

Tesla building a factory in Germany is:

• Portfolio Investment

• FDI

A prepaid travel card helps with:

• Exchange rate risk

• Inflation risk

A Fed interest rate hike impacting Brazil’s stock market is:

• Local risk

• Global Interconnection

If the Brazilian real gets weaker against the dollar, what happens to the cost of imported products?

• Prices decrease

• Prices increase

Which is an example of Translation Risk?

• A Brazilian company paying a supplier in dollars.

• A U.S. company converting Japanese profits into dollars.

Which investment gives the investor control over physical operations?

• Portfolio Investment

• FDI

A Brazilian freelancer gets paid in USD. If the USD drops compared to BRL, what happens?

• Their income in BRL decreases

• Their income in BRL increases

An economic risk example is:

• Paying an invoice in dollars next month.

• A strong real making Brazilian products more expensive abroad long-term.