Question

Which of the following BEST describes the difference

Q: Answer-Which of the following BEST describes the difference between Foreign Portfolio Investors (FPIs) and...

FPIs are primarily interested in generating quick returns through buying and selling financial instruments like stocks, bonds, and derivatives. They dont seek control over companies. FDIs, on the other hand, invest directly in businesses by establishing or acquiring subsidiaries in a foreign country. They aim for long-term growth and integration within the host economy.

between Foreign Portfolio Investors (FPIs) and Foreign Direct Investors (FDIs)?

A FPIs hold majority stakes in companies, while FDIs have minority interests.

B FPIs invest in readily tradable securities like stocks, while FDIs focus on long-term projects.

C FPIs aim for short-term capital gains, while FDIs prioritize economic development in the host country.

D FPIs are individuals, while FDIs are always corporations.

E There is no real difference; both terms refer to the same type of investor.

Practice Next

More ESI Questions

What is ‘Apna Chandrayaan’, recently launched?
When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?
All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the?
The economic cost of food grains to the Food Corporation Of India is Minimum Support Price and bonus (if any) paid to the farmers plus?
Which one of the following hypotheses postulates that individual's consumption in any time period depends upon resources available to the individual, ra...
Which of the following has been awarded the Digital India Awards in “Digital Empowerment of Citizens” category?
Identify the correct Statement about Monetary policy Committee?

I- It is a Statutory Body.

II- It is mandated to meet at least 6 times a y...
Which of the following statements regarding stocks and flows is/are correct?

1. Money supply is a stock whereas income is a flow.

2. GDP i...
Which of the following Organisation signed a loan agreement worth $250 million to improve the education Quality of Schools and anganwadi workers of Andh...
What is the main function of Clearing Corporation of India Limited?

Which of the following BEST describes the difference

Solution