<u>B) </u><u>Foreign portfolio investment. </u>
<h3><u>Foreign Portfolio Investment (FPI) – what is it?</u></h3>
A foreign portfolio investment (FPI) entails the acquisition of overseas financial assets by the investor. Foreign securities are typically traded on formal, established securities exchanges or through over-the-counter market transactions. As a method of portfolio diversification, investing abroad is getting more and more popular. FPIs frequently consist of passively held securities and alternative foreign financial assets held by foreign investors.
<h3><u>What aspects of overseas portfolio investment are there?</u></h3>
- Chances for economic growth.
- Sovereign danger.
- Rate of interest.
- Rates of tax.
- Change in value.
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Answer:
False, when interests rates are low, spending increases because more people are willing to spend more money to make big purchases on items such as cars or homes.
Sale of investment securities is an investing cash flow and transactions involving debt, equity, and dividends is a financing cash flow, as reported in the Statement of Cash Flows.
Investing activities include purchases of investments in securities, purchase of physical assets or sale of securities or assets.
Cash flow from financing activities is a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company.
Sale of investment securities comes in investing activities and debt, equity, dividends that are used to fund the company comes under financing activities.
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Answer:
The correct answer is letter "D": Class envy.
Explanation:
In behavioral economics, the endowment effect explains why an individual could give a higher value to an object that posses than giving a low value when the individual does not have it. The approach implies the object has symbolic importance for the individual while having it.
A good example of the endowment effect refers to a teacher that gives one of his classes' students mugs as gifts. The value of the students who received mugs was higher than the value of those who did not get one.