Foreign portfolio investment is included in the _____ account.

Question

Quizplus · Accepted Answer

Foreign portfolio investment refers to investments made by foreign individuals or entities in a country's financial markets, such as stocks, bonds, and mutual funds. As such, it falls under the capital account, which tracks cross-border investments in assets like stocks, bonds, and real estate. The current account, on the other hand, covers international transactions in goods and services, while the trade account specifically refers to the exchange of physical goods between countries. Direct investment includes long-term investments by foreign companies or individuals to establish a physical presence in a foreign country, such as building a factory or acquiring a local business.

Foreign Portfolio Investment Is Included in the _____ Account