Which of the following is NOT a type of foreign investment? MCQ with Answer and Explanation

Which of the following is NOT a type of foreign investment?
A. Domestic bank deposits by residents
B. External Commercial Borrowings
C. Foreign Direct Investment
D. Foreign Portfolio Investment
Answer: Option A
Solution (By JKSSB Mock Tests)
Domestic bank deposits by residents are not foreign investment. FDI, FPI and ECBs represent different forms of foreign capital inflows.

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Practice More Economy Set 1 Questions

Question #1
The National Infrastructure Pipeline originally aimed to invest how much in infrastructure between 2020 and 2025?
A. Rs 50 lakh crore
B. Rs 100 lakh crore
C. Rs 25 lakh crore
D. Rs 200 lakh crore

Correct Answer: Option B


Explanation:
The National Infrastructure Pipeline aimed at investments of Rs 111 lakh crore (about Rs 100 lakh crore) during 2020-25.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Multilateral Investment Guarantee Agency' provides:
A. export subsidies
B. currency exchange
C. trade finance
D. political risk insurance and credit enhancement for foreign investment

Correct Answer: Option D


Explanation:
MIGA provides political risk insurance to promote foreign direct investment.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on inter-state supply is:
A. SGST
B. IGST
C. UTGST
D. CGST

Correct Answer: Option B


Explanation:
Inter-state supplies attract IGST.

This question belongs to: Economy GK Economy Set 1