BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The investments done by “Those financial entities which were launched or incorporated in a foreign country but are investing in an Indian venture in India” are generally known as
A
Patent Money
B
Private Equity
C
Foreign Institutional Investment
D
Current Account Money
Explanation: 

Detailed explanation-1: -A foreign institutional investor (FII) is an investor or investment fund investing in a country outside of the one in which it is registered or headquartered. The term foreign institutional investor is probably most commonly used in India, where it refers to outside entities investing in the nation’s financial markets.

Detailed explanation-2: -Foreign Direct Investments (FDI) are a part of the investment made by Foreign Institutional Investors. However, not every FII will make an FDI in the country it is investing in. FIIs directly impact the stock/securities market of the country, its exchange rate and inflation.

Detailed explanation-3: -There are three types of FDI in India: foreign portfolio investment (FPI), foreign institutional investment (FIIs) and automatic approval of applications from foreign companies under the automatic route.

Detailed explanation-4: -Description: Foreign institutional investors play a very important role in any economy. These are the big companies such as investment banks, mutual funds etc, who invest considerable amount of money in the Indian markets. With the buying of securities by these big players, markets trend to move upward and vice-versa.

There is 1 question to complete.