Both foreign direct investment (FDI) and foreign portfolio investment (FPI) are...

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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 FPI can be withdrawn even at a short notice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

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