The capital account is divided into three subcategories: direct investment,portfolio investment,and other investment.Portfolio investment involves
A)acquisitions of controlling interests in foreign businesses.
B)investments in foreign stocks and bonds that do not involve acquisitions of control.
C)bank deposits,currency investment,trade credit,and the like.
D)all of the options

Question

Quizplus · Accepted Answer

Portfolio investment involves investments in foreign stocks, bonds, and other financial assets that do not involve acquiring controlling interests in foreign businesses. The other options (A, C, and D) refer to direct investment or other investments, which are different subcategories of the capital account.

The Capital Account Is Divided into Three Subcategories: Direct Investment,portfolio