Which of the following is an example of U.S. foreign portfolio investment?
A)Joan, a U.S. citizen, buys bonds issued by a Swedish corporation.
B)Russell, a U.S. citizen, opens a dairy in Italy.
C)Both A and B are examples of U.S. portfolio investment.
D)Neither A nor B are examples of U.S. portfolio investment.

Question

Quizplus · Accepted Answer

U.S. foreign portfolio investment refers to investing in financial assets like stocks, bonds, and mutual funds of foreign companies. Option A represents this as Joan, a U.S. citizen, buys bonds issued by a Swedish corporation. Option B is an example of foreign direct investment, not portfolio investment.

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