n NISM Certifications
XV NISM Series XV
Medium

A foreign investor has invested in the existing financial instruments of a country. This is known as ______.

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Foreign Direct Investment

  2. Foreign Portfolio Investment

    Correct answer

  3. C

    Foreign Aid

  4. D

    Foreign Financial Participation

Why this is the answer

FPI involves buying existing securities without participating in company management, unlike FDI, which involves active involvement in the business.

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