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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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