Direct foreign investment items have more liquidity than foreign portfolio investment items.

Question

Quizplus · Accepted Answer

Foreign portfolio investment items, such as stocks and bonds, are typically more liquid than direct foreign investment items, such as ownership of a foreign business or real estate. This is because portfolio investments can be easily bought and sold on a public market, whereas direct investments often require a more involved process to transfer ownership.

Direct Foreign Investment Items Have More Liquidity Than Foreign Portfolio