This Is the Limited,speculative Purchase of Stocks and Bonds of a Foreign

question 41

Multiple Choice

This is the limited,speculative purchase of stocks and bonds of a foreign company by individuals or mutual funds.

• A) Portfolio investment
• B) FDI
• C) TNI
• D) Direct investment

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Definitions:

Heuristic

A simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than algorithms.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, often used in problem-solving and judgment situations.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks, often used in mathematics and computer science.

Overconfidence Phenomenon

The tendency for an individual to overestimate their abilities, performance, level of control, or chance of success.