Question

PLEASE HELP ASAP Select all the correct answers. Which TWO statements describe domestic stocks? They are directly affected by exchange rate fluctuations. They are always traded in local currency. They are likely to be unfamiliar to investors. They are based in the investor’s country of residence. They form an important part of foreign trade.Which TWO statements describe domestic stocks?

- They are directly affected by exchange rate fluctuations.
- They are always traded in local currency.
- They are likely to be unfamiliar to investors.
- They are based in the investor’s country of residence.
- They form an important part of foreign trade.

Answer 1

Domestic stocks are always (2) traded in local currency and are based in the investor's country of residence(4) , making them less affected by exchange rate fluctuations and more familiar to investors.

Step-by-step explanation:

The two statements that accurately describe domestic stocks are:

• They are always traded in local currency.
• They are based in the investor’s country of residence.

Domestic stocks are shares of companies that are located within an investor's own country. As such, they are not directly affected by exchange rate fluctuations since they are not traded in foreign currencies but in the local currency where the investor resides.


This is unlike international stocks, where fluctuations in exchange rates can impact the value of the investment. Domestic stocks are also generally more familiar to investors as they are within their own economic and regulatory environment.