Which of the following is NOT a form of foreign investment?

Foreign Direct Investment (FDI)

Foreign Portfolio Investment (FPI)

National Resource Investment (NRI)

What is the main purpose of foreign capital in a developing country like India?

To create competition in the domestic market.

To reduce the need for domestic savings.

To fill gaps in resources required for development.

To decrease the dependence on technology transfer.

What is the primary contribution of foreign capital to a developing country?

Bridging the gap between exports and imports.

Filling the resource gap for development.

Reducing taxation on domestic enterprises.

Eliminating income disparities.

Why is Foreign Direct Investment (FDI) preferred over Foreign Portfolio Investment (FPI)?

FDI generates higher returns for investors.

FDI brings better management and technology transfer.

FDI is more liquid and can be easily withdrawn.

FDI requires less regulatory approval.

Which form of foreign investment is considered to be the most beneficial for the economy?

Foreign Direct Investment (FDI)

Foreign Institutional Investment (FII)

Non-Resident Indian (NRI) Investment

Foreign Portfolio Investment (FPI)

What is the role of Foreign Portfolio Investment (FPI) in the Indian economy?

FPI brings advanced technology to Indian industries.

FPI directly contributes to additional production capacity.

FPI increases capital availability in the economy.

FPI is primarily focused on the agricultural sector.

What is the purpose of concessional assistance in foreign investment?

To create competition in the domestic market.

To reduce the dependence on foreign aid.

To provide low-interest loans for economic development.

To eliminate the disparities in income distribution.

What is the primary advantage of Foreign Direct Investment (FDI) over Foreign Institutional Investment (FII)?

FDI provides better returns on investment.

FDI is more liquid and can be easily traded.

FDI brings technology transfer and management practices.

FDI has fewer regulatory restrictions.

Which of the following is NOT a form of foreign investment as per the Indian government's classification?

Foreign Direct Investment (FDI)

Foreign Institutional Investment (FII)

Non-Resident Indian (NRI) Investment

Non-Concessional Assistance (NCA)

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