Which of the following is an example of U.S.foreign portfolio investment?
A) Toni,a U.S.citizen,buys bonds issued by a Swedish corporation.
B) Randall,a U.S.citizen,opens a cheesecake factory in Italy.
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. citizens or entities in foreign securities such as stocks, bonds, and other financial assets. Option A is an example of this as Toni, a U.S. citizen, is investing in bonds issued by a foreign corporation. Option B, on the other hand, is an example of foreign direct investment as Randall is investing in opening a business in a foreign country. Option C is incorrect as only option A is an example of U.S. foreign portfolio investment. Option D is also incorrect as option A fits the definition of U.S. foreign portfolio investment.

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