SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    Which of the following statement(s) correctly express the difference between FII and FDI?

    A)  FII helps bring better management skills and technology, while FDI only brings in capital

    B)  FDI flows only into the secondary markets, while FII targets primary market.

    C)  FII is considered to be more stable than FDI

    D)  None of the above

    Correct Answer: D

    Solution :

    [d] Foreign direct investment (FDI) flows into the primary market whereas foreign institutional investment (FII) flows into the secondary market, that is, into the stock market.

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