A Sovereign Wealth Fund is generally defined as
A) A fund that invests in Sovereign Debt
B) Central Bank holdings of foreign exchange
C) A State-Run Fund that generally invest overseas in risky and/or illiquid assets
D) A State-Run Fund that invests only in domestic assets
E) A fund that invests the wealth of a King or Queen

Question

Quizplus · Accepted Answer

A Sovereign Wealth Fund is typically defined as a state-run investment fund that invests in a variety of assets, including international equities, real estate, private equity, and infrastructure. These funds are usually established by countries with large current account surpluses or significant mineral or energy resources. They aim to diversify their investments and generate returns that can be used for future generations or to support the government's budget. One of the main criticisms of these funds is that they can invest in risky or illiquid assets, which can expose the country to significant losses.

A Sovereign Wealth Fund Is Generally Defined as