Question

Which of the following is an example of foreign portfolio investment?

A. A European firm opens an interior design firm in San Francisco, CA.

B. In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories.

C. Ford Motor Company builds a car factory in Mexico.

D. A European firm opens a new toy factory in China.

The United Kingdom is an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.

A. true

B. false

Answer 1

"B"

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. foreign portfolio investment include not the physical stores in the foreign nations but the investment in bonds and equities.

Answer is "B".

The statement that UK grew faster than US in last century is "False".