Which of the following is an example of foreign portfolio investment?
A)the purchase of a Canadian stock by a Canadian citizen
B)the purchase of a Canadian government bond by a German citizen
C)the purchase of a Canadian mutual fund by a Canadian citizen
D)the purchase of a Japanese factory by a Korean citizen
E)the purchase of a Canadian vacation home by a Chinese citizen

Question

Quizplus · Accepted Answer

Foreign portfolio investment refers to the purchase of securities (e.g. stocks, bonds, mutual funds) issued by foreign entities by investors from another country. Option B is an example of this, as a German citizen is purchasing a Canadian government bond. The other choices involve either a domestic investor or the purchase of non-security assets.

Which of the Following Is an Example of Foreign Portfolio