Question

8. Foreign Direct Investment (FDI) preferred over Foreign Portfolio
Investment, because
1. FDI helps in technology transfer
2. FPI outflows can create unstable macroeconomic or political
conditions,
3. FPI doesn't create productive asset directly.
4. FPI affects foreign exchange rate as well as domestic money supply.
Select the correct answer using the code given below:
a) 1, 2 and 3
b) 1, 2 and 4
c) 2, 3 and 4
d) 1, 2, 3 and 4
=
2​

Answer 1

Answer:

c,......................