UPSC Exam > UPSC Questions > With reference to foreign portfolio investmen...
Start Learning for Free
With reference to foreign portfolio investments (FPI), consider the following statements:
1. FPIs are more volatile than loans from international financial institutions.
2. Foreign Direct Investments are part of FPIs.
Which of the statements given above is/are correct ?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
With reference to foreign portfolio investments (FPI), consider the fo...
Answer & Explanation: (a) 1 only.
FPI is also called Foreign institutional Investments ( FIIs). Because of their volatility they are also called hot money. Loans from international financial institutions are given for a fixed tenure and hence are stable. FDI is not part of FPI, but are accounted separately.
Most Upvoted Answer
With reference to foreign portfolio investments (FPI), consider the fo...
Explanation:
b) 2 only
Foreign portfolio investments (FPIs) refer to investments made by investors in financial assets such as stocks and bonds of foreign companies. Here is a detailed explanation for each statement provided:
b) Foreign Direct Investments are part of FPIs:
- Foreign Direct Investments (FDIs) and Foreign Portfolio Investments (FPIs) are two distinct forms of international investment. FDIs involve a long-term relationship between the investor and the company, with the investor having a significant degree of control over the management of the company.
- On the other hand, FPIs are more short-term investments where investors do not actively manage or control the companies in which they invest.
- Therefore, the statement that FDIs are part of FPIs is incorrect.
Therefore, the correct answer is option 'A' (1 only).
b) 2 only
Foreign portfolio investments (FPIs) refer to investments made by investors in financial assets such as stocks and bonds of foreign companies. Here is a detailed explanation for each statement provided:
b) Foreign Direct Investments are part of FPIs:
- Foreign Direct Investments (FDIs) and Foreign Portfolio Investments (FPIs) are two distinct forms of international investment. FDIs involve a long-term relationship between the investor and the company, with the investor having a significant degree of control over the management of the company.
- On the other hand, FPIs are more short-term investments where investors do not actively manage or control the companies in which they invest.
- Therefore, the statement that FDIs are part of FPIs is incorrect.
Therefore, the correct answer is option 'A' (1 only).
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
Question Description
With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
Solutions for With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?, a detailed solution for With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice With reference to foreign portfolio investments (FPI), consider the following statements:1. FPIs are more volatile than loans from international financial institutions.2. Foreign Direct Investments are part of FPIs.Which of the statements given above is/are correct ?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup