Question : Which of the following is not a type of portfolio investment?
Option 1: Purchasing foreign stocks
Option 2: Purchasing foreign bonds
Option 3: Investing in a foreign company
Option 4: Purchasing real estate in a foreign country
Correct Answer: Purchasing real estate in a foreign country
Solution : The correct answer is (d) Purchasing real estate in a foreign country
Purchasing real estate in a foreign country is not considered a type of portfolio investment. Portfolio investment refers to the purchase of financial assets such as stocks, bonds, and other securities that are held for investment purposes. It involves investing in financial instruments rather than tangible assets like real estate.
Option 4: Acquiring a foreign asset
Question : Which of the following is not a capital account transaction?
Option 1: Purchasing foreign stocks and bonds
Option 2: Making a foreign direct investment
Option 3: Borrowing from a foreign bank
Option 4: Buying goods and services from a foreign country
Question : Which of the following is not a type of foreign direct investment?
Option 1: Acquisition of a foreign subsidiary
Option 2: Joint venture with a foreign firm
Option 3: Greenfield investment in a foreign country
Option 4: Purchase of foreign bonds
Question : Which of the following is not an example of a capital outflow?
Option 1: Buying foreign bonds
Option 2: Investing in a foreign company
Option 4: Receiving foreign aid
Option 1: Joint venture
Option 2: Mergers and acquisitions
Option 3: Portfolio investment
Option 4: Greenfield investment
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