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Which of the following is an example of "portfolio investment"?
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- An American places funds in a savings account in Canada
- Tokyo Bank of Japan buys Union Bank of the United States
- Saturn Corp. (owned by General Motors) builds a new factory in Tennessee
- An American puts $10,000 into a money market fund
Correct Option: A
Portfolio investments are passive investments, as they do not entail active management or control of the issuing company.
