Question

    The purchase of shares and bonds of Indian companies by

    Foreign Institutional Investors is called?
    A Foreign Direct Investment Correct Answer Incorrect Answer
    B Foreign Indirect Investment Correct Answer Incorrect Answer
    C Portfolio Investment Correct Answer Incorrect Answer
    D NRI Investment Correct Answer Incorrect Answer
    E Share Investment Correct Answer Incorrect Answer

    Solution

    The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called Foreign Indirect Investment. Foreign direct investments (FDI) are the physical investments and purchases made by a company in a foreign country, typically by opening plants and buying buildings, machines, factories and other equipment in the foreign country.

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