What are sovereign wealth funds?
A)They are investment funds held by the world's monarchs.
B)They are investment funds held by the world's most powerful economic leaders.
C)They are economic tools used to regulate the amount of currency available in an economy.
D)They are state-owned investment funds, often made up of international assets.
E)They are state banks that tax international imports.

Question

Quizplus · Accepted Answer

Sovereign wealth funds are state-owned investment funds that invest in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as private equity fund or hedge funds. They are typically funded by the revenues from a country's reserves, which could be derived from a variety of sources including trade surpluses, foreign currency operations, the proceeds of privatizations, governmental transfer payments, fiscal surpluses, and/or receipts resulting from resource exports.

What Are Sovereign Wealth Funds