Which of the following is an example of U.S.foreign portfolio investment?
A)A U.S.legal office opens a branch office in Holland.
B)Erica,a U.S.resident,buys bonds issued by the Swiss government.
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 investments made by U.S. residents or entities in foreign financial assets such as stocks, bonds, and mutual funds. Buying bonds issued by the Swiss government is an example of such investment. Opening a branch office in Holland is an example of foreign direct investment, which is different from foreign portfolio investment. Therefore, option A is incorrect, and option B is the correct answer.

Which of the Following Is an Example of U