Question : Which of the following is not a type of trade finance?
Option 1: Letters of credit
Option 2: Factoring
Option 3: Countertrade
Option 4: Foreign direct investment
Correct Answer: Foreign direct investment
Solution : The correct answer is (d) Foreign direct investment
Foreign direct investment (FDI) is not a type of trade finance. FDI refers to the investment made by a company or individual in another country to establish or expand a business operation. It involves acquiring a significant ownership stake in a foreign company or establishing a new subsidiary. FDI is a form of long-term investment and is not specifically related to trade finance.
Question : Which of the following is not a type of capital flow?
Option 1: Foreign direct investment
Option 2: Portfolio investment
Option 3: international borrowing
Option 4: Merchandise trade
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 type of trade barrier?
Option 1: Quota
Option 2: Tariff
Option 3: Subsidy
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
Option 1: Joint venture
Option 2: Mergers and acquisitions
Option 3: Portfolio investment
Option 4: Greenfield investment
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