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Foreign Institutional Investors (FII) and Foreign Direct Investments (FDI) are both related to…

FII expands the availability of investment capital, whereas FDI is directed into particular business activities. Direct investment can also involve managerial participation…

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Foreign Institutional Investors (FII) and Foreign Direct Investments (FDI) are both related to investing in a country. Which of the following sentences best exemplifies a key distinction between the two?

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Answer and explanation

Correct answer A

FII expands the availability of investment capital, whereas FDI is directed into particular business activities. Direct investment can also involve managerial participation and technology, while institutional portfolio investment is generally more readily withdrawn.

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  • Jammu & Kashmir and Ladakh SET (JKSET/LASET)

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