Which term describes the movement of capital from one country to another to exploit investment opportunities?

CA Foundation · Business Economics · MTP · January 2025
Which term describes the movement of capital from one country to another to exploit investment opportunities?
(A) A. Foreign Direct Investment (FDI)
(B) B. Foreign Portfolio Investment (FPI)
(C) C. Exchange Rate Speculation
(D) D. Capital Flight

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Foreign Portfolio Investment (FPI)

Topics: Public Finance

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