Question : Which of the following is not a type of foreign direct investment?
Option 1: Acquisition of a foreign subsidiary
Option 2: Joint venture with a foreign firm
Option 3: Greenfield investment in a foreign country
Option 4: Purchase of foreign bonds
Correct Answer: Purchase of foreign bonds
Solution : The correct answer is (d) Purchase of foreign bonds. Foreign direct investment (FDI) refers to the investment made by a company or individual in a foreign country to establish a controlling interest in a business entity. It involves long-term and substantial investment in a foreign company or the establishment of a new business entity in a foreign country.
Option 1: Joint venture
Option 2: Mergers and acquisitions
Option 3: Portfolio investment
Option 4: Greenfield investment
Question : Which of the following is not a type of portfolio investment?
Option 1: Purchasing foreign stocks
Option 2: Purchasing foreign bonds
Option 3: Investing in a foreign company
Option 4: Purchasing real estate in a foreign country
Question : Which of the following is not a type of capital investment?
Option 1: Direct investment
Option 2: Indirect investment
Option 3: foreign investment
Option 4: National investment
Question : Which of the following is not a capital account transaction?
Option 1: Purchasing foreign stocks and bonds
Option 2: Making a foreign direct investment
Option 3: Borrowing from a foreign bank
Option 4: Buying goods and services from a foreign country
Option 4: Acquiring a foreign asset
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