Question
In the context of Indian Economy, consider the following
statements about Foreign Portfolio Investment (FPI)? I. It consists of securities and other financial assets passively held by foreign investors. II. It provides the investor with direct ownership of financial assets. III. FPI is less liquid and riskier than Foreign Direct Investment (FDI). Which of the above statements is/are correct?Solution
Foreign portfolio investment (FPI) consists of securities and other financial assets passively held by foreign investors. It does not provide the investor with direct ownership of financial assets and is relatively liquid depending on the volatility of the market. FPI is part of a country’s capital account and is shown on its Balance of Payments (BOP). FPI is often referred to as “hot money” because of its tendency to flee at the first signs of trouble in an economy. FPI is more liquid and riskier than Foreign Direct Investment (FDI).
What is the new LTV ratio for gold loans up to ₹2.5 lakh after RBI’s revision?
What does the DHL Global Connectedness Report 2024 reveal about the level of globalization in 2022 and its prospects for 2024?
The Global Carbon Budget report indicated a projected CO2 emissions rise of 0.8% in 2024. What percentage of total global CO2 emissions was attributed t...
What is the total area covered by the Carlsberg Ridge exploration zone allocated to India?
The study titled - "How India Searched Report 2023” has been released by Justdial indicating that Tier II and III cities across India contribute to 63...
Which of the following world organizations published the World Economic Situation and Prospects (WESP) Report?
Which mutual fund house has rebranded itself as Bandhan Mutual Fund?
Who was Buddhadeb Bhattacharya, and what was his significance in the political history of West Bengal?
The book "The Origin of Species" was written by which scientist?Â
Which Indian state is the site for the construction of 'Ayush Diksha - Human Resource Development Centre'?