Question

Foreign bonds have been an important instrument in the international capital market for centuries. In fact, a large percentage of U.S. railroads built in the nineteenth century were financed by sales of foreign bonds in A) Japan. B) Britain. C) Canada. D) Germany.

Answer 1

Answer:

Option D.

Explanation:

Britain, is the right answer.

A bond which is issued generally by a foreign entity in a domestic market in the denomination of the currency of that nation in order to raise capital is known as the Foreign Bonds. Foreign bonds have played a significant role in the international capital market. The importance of foreign bonds can be illustrated by the very fact that a large percentage of the United States railroads constructed in the 19th century was funded by sales of foreign bonds in Britain.