Which of the following is an example of U.S.foreign portfolio investment?
A)Albert, a German citizen, buys stock in a U.S.computer company.
B)Larry, a citizen of Ireland, opens a fish and chips restaurant in the United States.
C)Ruth, a U.S.citizen, buys bonds issued by a German corporation.
D)Dustin, a U.S.citizen, opens a country-western tavern in New Zealand.

Question

Quizplus · Accepted Answer

Foreign portfolio investment refers to investments in foreign financial assets such as stocks, bonds, and mutual funds. In this case, Ruth, a U.S. citizen, buying bonds issued by a German corporation is an example of U.S. foreign portfolio investment as she is investing in foreign financial assets. The other choices do not involve financial asset investments.

Which of the Following Is an Example of U