Foreign Portfolio Investment (FPI) involves:

CA Foundation · Business Economics · MTP · June 2024
Foreign Portfolio Investment (FPI) involves:
(A) A. Investment in tangible assets in a foreign country
(B) B. Investment in financial assets such as stocks and bonds of foreign companies
(C) C. Establishing subsidiaries or acquiring stakes in foreign companies
(D) D. Long-term commitment to a foreign market

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Investment in financial assets such as stocks and bonds of foreign companies

Topics: International Trade

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