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

Foreign Direct Investment is distinguished from Foreign Portfolio Investment mainly by:
A. the amount of investment
B. investment only in government securities
C. lasting interest and managerial control
D. short-term currency trading
Answer: Option C
Solution (By JKSSB Mock Tests)
FDI involves lasting interest and managerial control, while FPI does not.

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Practice More Economy Set 1 Questions

Question #1
The 'International Court of Justice' is located in:
A. New York
B. Geneva
C. The Hague
D. Vienna

Correct Answer: Option C


Explanation:
ICJ is located in The Hague.

This question belongs to: Economy GK Economy Set 1
Question #2
In the context of competition policy for digital markets, 'Killer Acquisitions' refer to:
A. Acquisitions of innovative start-ups by dominant incumbents with the aim of discontinuing the target’s innovation to protect the incumbent’s market position
B. Acquisitions that always increase innovation
C. Only horizontal mergers among equals
D. Only conglomerate mergers without any competitive effect

Correct Answer: Option A


Explanation:
Killer acquisitions occur when a dominant firm acquires a potential competitor primarily to eliminate the competitive threat posed by the target’s product or technology rather than to develop it.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'General Agreement on Tariffs and Trade' was signed in which year?
A. 1947
B. 1944
C. 1955
D. 1995

Correct Answer: Option A


Explanation:
GATT was signed in 1947 and came into force in 1948.

This question belongs to: Economy GK Economy Set 1