What is the investment by a foreign investor in Indian shares and bonds called?
- AFDI
- BFPI
- CFII
- DECB
Correct Answer: B
In Foreign Portfolio Investment (FPI), foreign investors invest in Indian shares, bonds, and other financial securities, whereas Foreign Direct Investment (FDI) relates to long-term investment in businesses and projects. FPI enhances liquidity in the Indian capital market but is volatile, whereas FDI contributes to capital formation, employment, manufacturing, technology transfer, and long-term economic growth.
This question is part of 21 August 2026 Current Affairs Quiz | Daily GK MCQs Online Test.
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