The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called:
Show Hint
- Foreign Direct Investment
- Portfolio Investment
- NRI Investment
- Merger and Acquisition
The Correct Option is B
Solution and Explanation
FIIs are investors or investment funds from abroad who invest in financial assets like shares and bonds in Indian companies.
Step 2: Portfolio Investment
This is a type of investment where investors buy securities but do not have control over the companies. They seek returns from dividends and capital gains.
Step 3: Other options
- Foreign Direct Investment (FDI) involves direct control or management of businesses.
- NRI Investment refers to investments by Non-Resident Indians.
- Mergers and Acquisitions involve combining or purchasing companies, different from portfolio investment.
Thus, Option (B) Portfolio Investment is correct.
Top Questions on Economics
- Unequality in India is due to:
Consider the following Harrod-Domar growth equation: \[ \frac{s}{\theta} = g + \delta \] where \( s \) is the saving rate, \( \theta \) is the capital-output ratio, \( g \) is the overall growth rate, and \( \delta \) is the capital depreciation rate. If \( \delta = 0 \) and \( s = 20% \), then to achieve \( g = 10% \), the capital-output ratio will be ________ (in integer).
Let \( Y \) be income, \( r \) be the interest rate, \( G \) be government expenditure, and \( M_s \) be money supply. Consider the following closed economy IS-LM equations with a fixed general price level (\( \bar{P} \)):
IS equation: \[ Y = 490 + 0.6Y - 4r + G \] LM equation: \[ \frac{M_s}{\bar{P}} = 20 + 0.25Y - 10r \] If \( G = 330 \) and \( \frac{M_s}{\bar{P}} = 500 \), then the equilibrium \( Y \) is ________ (round off to one decimal place).- Consider a two-person exchange economy where two goods, \( x \) and \( y \), are available in limited quantities of 50 and 100, respectively. The preferences of the two persons, Anil and Binod, are given by the utility functions: \[ U_{{Anil}}(x_{{Anil}}, y_{{Anil}}) = x_{{Anil}}^{0.4} y_{{Anil}}^{0.6} \] \[ U_{{Binod}}(x_{{Binod}}, y_{{Binod}}) = x_{{Binod}}^{0.6} y_{{Binod}}^{0.4} \] If they decide to share good \( y \) equally among themselves, the amount of good \( x \) Anil receives is ______________ (in integer).
- Which of the following statements is/are NOT CORRECT?
Questions Asked in KLEE exam
- Which of the following countries does not have a bicameral legislature?
- KLEE - 2023
- Constitutional Laws
- Which of the following High Courts of India does not have a common jurisdiction over two or more states or union territories?
- KLEE - 2023
- Constitutional Laws
- What is the name of the committee that every employer is required to constitute under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013?
- KLEE - 2023
- Constitutional Laws
- Which of the following events does not constitute a "Force Majeure" according to the common definition of the term?
- KLEE - 2023
- Laws of Contract
- Which agency was established under the Delhi Special Police Establishment Act?
- KLEE - 2023
- Constitutional Laws
