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Consider the following statements.
- Singapore has the biggest Foreign portfolio investment(FPI) in India.
- The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India.
- Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.
Which of the above statements is/are correct?
- a)2, 3
- b)2 only
- c)1, 2
- d)1, 3
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. Singapore has the biggest Foreign p...
Statement 1: Singapore has the biggest Foreign portfolio investment (FPI) in India.
This statement is incorrect. While Singapore is indeed one of the largest sources of Foreign Portfolio Investments (FPI) in India, it is not the biggest. Mauritius and the United States have historically been the largest contributors to FPI in India. However, Singapore does hold a significant share of FPI in the country.
Statement 2: The sustained fall in US bond yields can lead to an increase in Foreign portfolio investments (FPI) in India.
This statement is correct. When the yields on US bonds fall, it makes them less attractive to investors seeking higher returns. As a result, foreign investors may look to other markets, such as India, to invest their funds. This can lead to an increase in Foreign Portfolio Investments (FPI) in India as investors seek higher returns in emerging markets.
Statement 3: Pull-out of Foreign portfolio investment from India is a major concern for the Indian stock market and not for Reserve Bank of India.
This statement is incorrect. The pull-out of Foreign Portfolio Investments (FPI) from India is a major concern for both the Indian stock market and the Reserve Bank of India (RBI). Foreign portfolio investments play a significant role in providing liquidity and stability to the Indian stock market. A sudden withdrawal of these investments can lead to a decrease in stock prices, market volatility, and a loss of investor confidence. The RBI also closely monitors FPI flows as part of its overall management of the country's external sector and exchange rate stability.
In conclusion, the correct statements are:
- The sustained fall in US bond yields can lead to an increase in Foreign portfolio investments (FPI) in India.
- Pull-out of Foreign portfolio investment from India is a major concern for the Indian stock market and not for Reserve Bank of India.
This statement is incorrect. While Singapore is indeed one of the largest sources of Foreign Portfolio Investments (FPI) in India, it is not the biggest. Mauritius and the United States have historically been the largest contributors to FPI in India. However, Singapore does hold a significant share of FPI in the country.
Statement 2: The sustained fall in US bond yields can lead to an increase in Foreign portfolio investments (FPI) in India.
This statement is correct. When the yields on US bonds fall, it makes them less attractive to investors seeking higher returns. As a result, foreign investors may look to other markets, such as India, to invest their funds. This can lead to an increase in Foreign Portfolio Investments (FPI) in India as investors seek higher returns in emerging markets.
Statement 3: Pull-out of Foreign portfolio investment from India is a major concern for the Indian stock market and not for Reserve Bank of India.
This statement is incorrect. The pull-out of Foreign Portfolio Investments (FPI) from India is a major concern for both the Indian stock market and the Reserve Bank of India (RBI). Foreign portfolio investments play a significant role in providing liquidity and stability to the Indian stock market. A sudden withdrawal of these investments can lead to a decrease in stock prices, market volatility, and a loss of investor confidence. The RBI also closely monitors FPI flows as part of its overall management of the country's external sector and exchange rate stability.
In conclusion, the correct statements are:
- The sustained fall in US bond yields can lead to an increase in Foreign portfolio investments (FPI) in India.
- Pull-out of Foreign portfolio investment from India is a major concern for the Indian stock market and not for Reserve Bank of India.
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Consider the following statements. Singapore has the biggest Foreign p...
- The sustained fall in US bond yields is a positive for emerging markets like India.
- Since inflation in the US is showing a moderating trend, dollar and US bond yields are declining. This means FPIs are likely to buy more in the coming days.
- The pullout by FPIs was a major concern for policy makers and the central bank as the rupee came under pressure, and the RBI was forced to use dollars from its forex kitty to stabilise the currency. If FPIs continue their investments in Indian markets — which is likely if US inflation comes down further and the Fed slows its rate hikes — it will bring more confidence among market players.
- Singapore recently surpassed Mauritius to become the second biggest FPI investor in India. The US continues to be on top.
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Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer?.
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Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements. Singapore has the biggest Foreign portfolio investment(FPI) in India. The sustained fall in US bond yields can lead to increase in Foreign portfolio investments(FPI) in India. Pull-out of Foreign portfolio investmentfrom India is a major concern for the Indian stock market and not for Reserve Bank of India.Which of the above statements is/are correct?a)2, 3b)2 onlyc)1, 2d)1, 3Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
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