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Question

Economics Question on Balance of payments (BOP)

Identify the source/example of Portfolio Investment being part of Capital Account item of Balance of Payments.

A

Net invisible

B

Direct investment made by foreign people

C

Investment made by foreign institutional investors in the stock market

D

External Commercial Borrowings

Answer

Investment made by foreign institutional investors in the stock market

Explanation

Solution

The correct option is (C): Investment made by foreign institutional investors in the stock market