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    Question

    Which of the following are INCORRECT statements?

    A FDI is a part of Capital Account Correct Answer Incorrect Answer
    B FPI is a part of Current Account Correct Answer Incorrect Answer
    C Return on investment is a part of Capital Account Correct Answer Incorrect Answer
    D Both b and c Correct Answer Incorrect Answer
    E Both a and c Correct Answer Incorrect Answer

    Solution

    Both FDI and FPI (Foreign Portfolio Investment) are part of Capital Account. Retrun on these investment are mentioned in Current Account. FPI refers to securities and financial assets held by foreign investors. Foreign Institutional Investment (FII) is a type of FPI. 

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