SIE Exam Question 941: Answer and Explanation

Question: 941

____ American Depository Receipts

• A. Dividends are declared in local currencies and paid in U.S. dollars.
• B. Pay a fixed rate of interest every six months until maturity; issued in terms of ten years or more.
• C. Can be redeemed at any time without penalty; objective is to earn interest for shareholders.
• D. Intended to be held until maturity, but can be redeemed prior to maturity for a penalty.

Correct Answer: F

Explanation:

American Depository Receipt dividends are declared in local currencies and paid in U.S. dollars.