Which of the Following Statements Is the Best Example of Direct

Multiple Choice

Which of the following statements is the best example of direct investment?

A) A U.S.company acquires more than 10 percent ownership of a foreign company.
B) A foreign bank lends more than 10 percent of the funds needed by a business.
C) A foreign bank lends less than 10 percent of the funds needed by a business.
D) A U.S.company acquires less than 10 percent ownership of a foreign company.
E) The Bank of America extends a loan to a foreign country.