Question 30
MediumOriginal questionRead the two statements and choose the correct option.
I. Foreign direct investment is recorded in the current account.
II. Portfolio investment gives the investor control over the company.
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
FDI is a capital account item. I is false.
Portfolio investment buys shares for returns without control. II is false.
- Concept
- FDI and portfolio facts
- Typical timeTypical
- 70 s
- Your timeYours
- —
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