Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Which of the following category of foreign investors who makes investment in stocks and bonds in India will not a part of Foreign Institutional Investors (FIIs)?

Options:

investment banks

commercial banks

pension funds

none of the above

Correct Answer:

none of the above

Explanation:

Foreign Institutional Investors (FIIs): Banking and non-banking financial institutions of foreign origin e.g. commercial banks, investment banks, mutual funds, pension funds or other such institutional investors (as distinct from the domestic financial institutions investing) whose investment in stocks and bonds in the country through stock markets have significant influence.

Foreign Institutional Investment : Foreign investments which come in the form of stocks, bonds, or other financial assets. This form of investment does not entail active management or control over the firms or investors.