SSC GD 2021 PYQ — Question 49

SSC GD Constable (English) - 18th November 2021 Shift 3 • General Awareness • Q49

 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.

  • Foreign portfolio investment (FPI) is a common way to invest in overseas economies.

  • It includes securities and financial assets held by investors in another country. 

  • Securities (in FPI) include stocks or American Depositary Receipts (ADRs) of companies in nations other than the investor's nation.

  • 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.