Question : Which type of foreign investment is considered unsafe?
Option 1: Foreign Direct Investment (FDI)
Option 2: Portfolio Investment
Option 3: NRI deposits
Option 4: External commercial borrowing
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Correct Answer: Portfolio Investment
Solution : The correct option is Portfolio Investment .
A portfolio investment is an investment made in a collection of assets rather than a single asset to earn returns. Examples of these assets include debt, stock, mutual funds, bitcoins, and derivatives.
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