FPI consists of securities and other financial assets passively held by foreign investors.
What is the full form of FPI?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Foreign Portfolio Investment.
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Foreign portfolio investment (FPI) is a common way to invest in overseas economies.
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It includes securities and financial assets held by investors in another country.
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Securities (in FPI) include stocks or American Depositary Receipts (ADRs) of companies in nations other than the investor's nation.
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It also includes bonds or other debt issued by these companies or foreign governments, mutual funds, or exchange-traded funds (ETFs) that invest in assets abroad or overseas.