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    Question

    Which type of foreign investment is considered as

    unsafe
    A Foreign Direct Investment Correct Answer Incorrect Answer
    B Portfolio investment Correct Answer Incorrect Answer
    C NRI deposits Correct Answer Incorrect Answer
    D External commercial borrowing Correct Answer Incorrect Answer

    Solution

    Portfolio Investments are considered unsafe. Portfolio investment is an investment as a group of assets (portfolio), which includes transactions in equities, securities, such as common stock, and debt securities, such as banknotes, bonds, and debentures.

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