Question
Which among these is the most volatile Foreign Capital?
Solution
Foreign portfolio investment (FPI) consists of securities and other financial assets held by investors in another country. It does not provide the investor with direct ownership of a company's assets and is relatively liquid depending on the volatility of the market. Along with foreign direct investment (FDI), FPI is one of the common ways to invest in an overseas economy. FDI and FPI are both important sources of funding for most economies.
The RBI has allowed international trade settlement in rupees for which AD banks need to open ____________, in terms of Regulation 7(1) of Foreign Exchan...
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Variable cos...