The acquisition of a domestic financial asset by a foreign resident is called

Question

Quizplus · Accepted Answer

The acquisition of a domestic financial asset by a foreign resident is called a portfolio inflow. This refers to the investment in a country's financial assets, such as stocks or bonds, without any intention of taking control of a company or establishing a long-term presence in that country. Foreign direct investment (A) refers to the investment in a foreign business with the intention of controlling it, while foreign capital investment (B) is not a commonly used term in finance. Portfolio outflow (D) and capital outflow (E) refer to the opposite scenario, where domestic residents invest in foreign financial assets.

The Acquisition of a Domestic Financial Asset by a Foreign