Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
AFII helps bring better management skills and technology, while FDI only brings in capital
BFII helps in increasing capital availability in general, while FDI only targets specific sectors
CFDI flows only into the secondary market, while FII targets primary market
DFII is considered to be more stable than FDI
Answer & Solution
Correct answer: B. FII helps in increasing capital availability in general, while FDI only targets specific sectors
UPSC CSE Prelims 2011 (GS-I, Set A), Q.28. Official answer key: B.
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