Foreign Saving Is Used for Domestic Investment When Foreigners Engage

question 5

Multiple Choice

Foreign saving is used for domestic investment when foreigners engage in

• A)foreign direct investment.
• B)foreign portfolio investment.
• C)either foreign direct investment or foreign portfolio investment.
• D)None of the above is correct.

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Definitions:

Uniform Density

A type of distribution in which all outcomes are equally likely within a specified range, characterized by a constant probability density function.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1.

Poisson Approximation

A statistical method used to approximate the probabilities of rare events in a fixed interval of time or space, assuming events occur with a known constant rate independently of the time since the last event.

Probability

A value between 0 and 1 determining how likely an event is to occur, representing its probability.