Questions: Which of these correctly defines a role of investments? Investments are concerned with which operations should be conducted overseas. Investments address the timing of cash flows most desired by investors. Investments are concerned with helping banks determine the amount of capital they can lend. Investments addresses which projects a firm should finance.

The answer is: Investments address the timing of cash flows most desired by investors.

Explanation for each option:

1. Investments are concerned with which operations should be conducted overseas.

   • This statement is incorrect. Deciding which operations should be conducted overseas is typically a function of international business strategy or operations management, not investments.

2. Investments address the timing of cash flows most desired by investors.

   • This statement is correct. Investments involve analyzing and managing the timing of cash flows to meet the needs and preferences of investors. This includes understanding when investors need returns and structuring investments to align with those needs.

3. Investments are concerned with helping banks determine the amount of capital they can lend.

   • This statement is incorrect. Determining the amount of capital banks can lend is more related to banking regulations, risk management, and financial analysis within the banking sector, rather than investments.

4. Investments addresses which projects a firm should finance.

   • This statement is partially correct but not the best answer in this context. While investment decisions do involve determining which projects to finance, the primary focus of investments is broader and includes the timing and management of cash flows, risk assessment, and portfolio management.