Which of the following is an indirect investment?
A) Stocks in foreign companies
B) U.S. savings bonds
C) Mutual funds
D) Real estate

Question

Quizplus · Accepted Answer

Mutual funds are an indirect investment as they pool money from multiple investors and invest in a diversified portfolio of securities, such as stocks and bonds. The investor does not own individual stocks or bonds directly.

Stocks in foreign companies and real estate are both examples of direct investments as the investor owns shares in the foreign company or property directly. U.S. savings bonds are a type of fixed income security issued by the government and are also considered a direct investment.

Which of the Following Is an Indirect Investment