Foreign Direct Investment is distinguished from Foreign Portfolio Investment mainly by: MCQ with Answer and Explanation

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Foreign Direct Investment is distinguished from Foreign Portfolio Investment mainly by:

A. the amount of investment

B. lasting interest and managerial control

C. investment only in government securities

D. short-term currency trading

Answer: Option B

Solution (By JKSSB Mock Tests)

FDI involves lasting interest and managerial control, while FPI does not.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The concept of 'Tragedy of the Commons' illustrates:

A. The efficient use of private goods

B. The under-provision of public goods only

C. The overuse of a common-pool resource when property rights are not well defined

D. The benefits of free access to all resources

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Correct Answer: Option C

Explanation:
The tragedy of the commons describes the tendency for a shared, non-excludable but rivalrous resource to be over-exploited when individual users do not bear the full social cost of their actions.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'net investment' is equal to gross investment minus:

A. taxes

B. savings

C. consumption

D. depreciation

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Correct Answer: Option D

Explanation:
Net investment = gross investment - depreciation.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Initiative for Developing and Harnessing Innovations' supports:

A. innovation and entrepreneurship

B. banking technology

C. defence manufacturing only

D. agricultural research only

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Correct Answer: Option A

Explanation:
NIDHI supports innovation and entrepreneurship.

This question belongs to: Economy GK Economy Set 1

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