Portfolio investment
What Portfolio investment means in Economics A-Level, as defined for AQA.
Definitions of Portfolio investment
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Reference: AQA
The purchase of financial assets, such as equities or government bonds, in a foreign country without gaining managerial control.
Short-term financial asset purchases, or hot money, that can cause severe exchange rate volatility.
Topics that use Portfolio investment
- The balance of payments (AQA A-Level)
Related terms
- Balance of payments
- Capital account
- Competitiveness
- Current account
- Current account deficit
- Exchange rates
- Expenditure-reducing policies
- Expenditure-switching policies
Using Portfolio investment in the exam
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