All of the following are true about foreign direct investment (FDI) and portfolio investment EXCEPT
A) increases in the flow of portfolio investments increase the likelihood of financial crisis.
B) both portfolio investments and FDI are the same in that they both give their holders a claim on the future output of the foreign economy.
C) FDI is relatively illiquid compared to portfolio investment.
D) portfolio investments have been on the decline in recent years (or decades).
D
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Which of the following is the most important contributor to human capital?
a. education b. effort c. chance d. physical strength
The discount rate is the rate of interest at which:
A. Federal Reserve Banks lend to commercial banks. B. savings and loan associations lend to some builders. C. Federal Reserve Banks lend to large corporations. D. commercial banks lend to large corporations.