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Both Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII)

Question 1

Multiple Choice

Both foreign direct investment (FDI) and foreign institutional investment (FII) are related to investment in a country. Which of the following is incorrect regarding FDI and FII?


A) Both FII and FDI bring capital into the economy.
B) FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups.
C) The restrictions on the entry of FDI are lower than that on FII.
D) FDI is considered to be more stable thna FII. FII can be withdrawn even at a short notice.

Correct Answer:

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