The Difference Between Foreign Direct Investment and Portfolio Investment Is

question 54

Multiple Choice

The difference between Foreign Direct Investment and Portfolio Investment is that

• A)Portfolio Investment mostly represents the sale and purchase of foreign financial assets such as stocks and bonds that do not involve a transfer of control.
• B)Foreign Direct Investment mostly represents the sale and purchase of foreign financial assets such as stocks whereas Portfolio Investment mostly involves the sales and purchase of foreign bonds.
• C)Foreign Direct Investment is about buying land and building factories,whereas portfolio investment is about buying stocks and bonds.
• D)all of the options

Apply the concept of continuous compounding to calculate future values.

Evaluate investment opportunities using present value and future value concepts.

Understand and calculate the effective annual rate (EAR) for mortgages and loans.

Understand the concept of time value of money and its applications.

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Definitions:

Terminals

The end points of an electrical device or a cable where connections are made to enable the flow of electrical current.

Diode

A semiconductor device that allows current to flow in one direction only, used in electronics for rectification and signaling.

Relay

Any of a number of devices that receives a signal and then effects an action. In vehicle electrical circuits, relays are used to allow a small current circuit to control a large current circuit such as in a starter relay. Also known as a pilot.

Transistor

A semiconductor device used to amplify or switch electronic signals and electrical power, fundamental in modern electronic circuits.