Which of the following is an example of U.S. foreign portfolio investment?

A) Albert, a German citizen, buys stock in a U.S.computer company.
B) Erica, a U.S.resident, buys bonds issued by the Swiss government.
C) A U.S.based restaurant chain opens new restaurants in India.
D) A U.S.citizen builds and operates a coffee shop in the Netherlands.

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Aspen Smith · Accepted Answer

Final Answer : B, Explanation :  Foreign portfolio investment involves purchasing financial assets, such as stocks or bonds, in a foreign country. In this case, Erica, a U.S. resident, buying bonds issued by the Swiss government is an example of a U.S. foreign portfolio investment because it involves a U.S. resident investing in foreign financial assets.

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