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Management · Q103

International Finance and Treasury

Graduate and Post Graduate · Management · question 103

Q103

A depository receipt

A.
is a non-negotiable instrument
B.
represents shares issued in local currency
Answer
C.
is issued by custodian
D.
is issued for safe custody of articles

Answer: Option B

Solution

Answer: Option B
Solution:
A depository receipt represents shares issued in local currency. A depositary receipt (DR) is a negotiable financial instrument issued by a bank to represent a foreign company's publicly traded securities.