An example of foreign portfolio investment is?
A)the purchase of an Australian bond by an Australian citizen.
B)the purchase of an Australian mutual fund by an Australian citizen.
C)the purchase of an Australian Commonwealth Government security by a French citizen.
D)the purchase of a Japanese factory by a Korean company.

Question

Quizplus · Accepted Answer

Foreign portfolio investments refer to investments made in securities, such as stocks, bonds, and mutual funds, by foreign investors in a country other than their own. Option C is the only choice that involves a foreign citizen investing in an Australian security, making it an example of foreign portfolio investment. The other options involve domestic investment or foreign direct investment, which do not fall under the category of foreign portfolio investment.

An Example of Foreign Portfolio Investment Is