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Business Studies

Money Market

International...

Question

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

A

Foreign institutional investment

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B

Portfolio investment

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C

External commercial borrowing

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D

Foreign direct investment

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Solution

The correct option is D Foreign direct investment
Option: (d)

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