GyanGramQuestion
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
PRELIMS 2011 · INDIAN ECONOMY
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related…
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• Correct Answer: B
• FII injects capital into financial markets broadly, while FDI targets specific sectors with long-term control.
• FDI brings technology and management; FII is 'hot money' and more volatile.
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