The transaction costs of investing directly in foreign-currency-denominated assets are relatively low.

Question

Quizplus · Accepted Answer

Investing directly in foreign-currency-denominated assets involve additional costs such as currency conversion, higher bid-ask spreads, and potential impacts of exchange rate fluctuations. These transaction costs can be relatively high, making it less attractive for individual or small investors.

The Transaction Costs of Investing Directly in Foreign-Currency-Denominated Assets Are