Both foreign direct investment (FDI) and foreign portfolio investment (FPI) are related to investment in a country. Which of the following is incorrect regarding FDI and FPI?
A. Both FPI and FDI bring capital into the economy
B. FII invests in technology-oriented enterprises, whereas FPI invests in traditional business setups
C. The restrictions on the entry of FDI are lower than that on FPI
D. FDI is considered to be more stable than FPI. FPI can be withdrawn even at a short notice
Answer: Option B
Which of the legislation do not from part of the legal environment of business in India?
A. The Drugs and Cosmetics Act, 1940
B. The prevention of Food Adulteration Act, 1954
C. The Monopolies and Restrictive Trade Practices Act, 1969
D. Both B and C
Consider the following statements. Which of these statements is/are true?
A. Socialism is compatible with democracy and liberty, whereas Communism involves creating an 'equal society' through an authoritarian state
B. Totalitarianism is a form of government which involves complete submission of people to the government. The State recognizes no limits to its authority and strives to control every aspect of public and private life wherever feasible
C. India differed from core socialism as it went for a mixed economy rather than complete government control
D. All of the above statements are true
"Repo Rate" refers to the rate at which
A. RBI borrows short-term money from the market
B. Banks keeps the money with RBI
C. Banks take money from RBI after offering some securities
D. Forex is purchased by RBI
A. Preferential Trade Area
B. Custom Unions
C. Economic Union
D. Common Market
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