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. lasting interest and managerial control

B. the amount of investment

C. short-term currency trading

D. investment only in government securities

Answer: Option A

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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Question #1

The 'Credit Linked Capital Subsidy Scheme' for MSMEs provides subsidy on:

A. raw material purchases

B. capital investment for technology upgradation

C. wage payments

D. interest payments

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Correct Answer: Option B

Explanation:
CLCSS provides capital subsidy for technology upgradation by MSMEs.

This question belongs to: Economy GK Economy Set 1

Question #2

The term 'Non-Performing Asset' (NPA) in banking refers to:

A. An asset that generates income regularly

B. Government securities held by banks

C. A loan on which interest or principal is overdue for a specified period

D. Cash reserves of the bank

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Correct Answer: Option C

Explanation:
An NPA is a loan or advance where interest or principal remains overdue for a period of more than 90 days (as per RBI norms for term loans).

This question belongs to: Economy GK Economy Set 1

Question #3

The 'GST Council' can recommend which of the following?

A. taxes to be subsumed under GST

B. income tax rates

C. corporate tax rates

D. customs duties on imports

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Correct Answer: Option A

Explanation:
GST Council recommends taxes to be subsumed and GST rates.

This question belongs to: Economy GK Economy Set 1

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