Purchase of shares/bonds of a company in

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Purchase of shares/bonds of a company in Country A by residents of Country B is known as ?

Options:

official transactions

private transactions

direct investment

portfolio investment

Correct Answer:

portfolio investment

Explanation:

The correct answer is option 4: portfolio investment

Foreign portfolio investment (FPI) refers to investments made in securities and other financial assets issued in another country.