McqMate
| Q. |
Both foreign direct investment (FDI) and foreign institutional investment (FII) are related to investment in a country. Which of the following is incorrect regarding FDI and FII? |
| A. | Both FII and FDI bring capital into the economy. |
| B. | FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups. |
| C. | The restrictions on the entry of FDI are lower than that on FII. |
| D. | FDI is considered to be more stable thna FII. FII can be withdrawn even at a short notice. |
| Answer» B. FII invests in technology-oriented enterprises, whereas FDI invests in traditional business set ups. | |
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