Sovereign wealth funds are created for all of the following reasons, EXCEPT:
A) to get a better return on their assets.
B) to save the windfall from natural resource exports.
C) to discourage foreign investment in the domestic economy.
D) to invest bank reserves and state revenue/savings.

Question

Quizplus · Accepted Answer

Sovereign wealth funds are typically created to achieve a better return on assets, save windfall from natural resource exports, and invest bank reserves and state revenue/savings. The purpose is primarily to provide a long-term savings vehicle for a nation's wealth and to use that wealth for future generations. It is not intended to discourage foreign investment in the domestic economy. In fact, many sovereign wealth funds invest in foreign companies and assets to diversify their holdings and improve returns.

Sovereign Wealth Funds Are Created for All of the Following