UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Money Supply and Indian Financial System

  • question_answer
          International capital flows have been uncertain and volatile, causing exchange rate and balance of payment crisis among developing countries. Among the various sources of external capital available to India which source should you consider as the most preferable?

    A) Foreign institutional investment

    B) Portfolio investment

    C) External commercial borrowing

    D) Foreign direct investment

    Correct Answer: D


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