Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Liberalisation, Privatisation and Globalisation - An Appraisal

Question:

Which of the following is NOT a part of Foreign Direct Investment?

Options:

Investment in security markets

Investment in development of infrastructure

Investment done is setting up of capital goods industry

All of the above

Correct Answer:

Investment in security markets

Explanation:

A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Foreign portfolio investment (FPI) instead refers to investments made in securities and other financial assets issued in another country. Thus, investment in security markets will not be a part of Foreign Direct Investment.