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: Acquiring a foreign asset
Correct Answer: Investing in a foreign company
Solution : The correct answer is (c) Investing in a foreign company
Investing in a foreign company is not typically considered a type of portfolio investment. Portfolio investment refers to the purchase of financial assets such as stocks, bonds, and other securities with the expectation of earning a return. It typically involves investments in tradable securities, rather than direct investments in specific companies.
Option 4: Purchasing real estate in a foreign country
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 official reserve asset?
Option 1: Gold
Option 2: foreign currencies
Option 3: Special Drawing Rights (SDRs)
Option 4: Stocks and bonds
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
Option 1: Joint venture
Option 2: Mergers and acquisitions
Option 3: Portfolio investment
Option 4: Greenfield investment
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