Prelims

(a)

An Indian company investing in a foreign enterprise and paying taxes to the foreign country on the profits arising out of its investment

(b)

A foreign company investing in India and paying taxes to the country of its base on the profits arising out of its investment

(c)

An Indian company purchases tangible assets in a foreign country and sells such assets after their value increases and transfers the proceeds to India

(d)

A foreign company transfers shares and such shares derive their substantial value from assets located in India

(a)

1, 2 and 3

(b)

3 only

(c)

2 and 4

(d)

1 and 4

(a)

It is the investment through capital instruments essentially in a listed company.

(b)

It is a largely non-debt creating capital flow.

(c)

It is the investment which involves debt-servicing.

(d)

It is the investment made by foreign institutional investors in the Government securities.

(a)

1, 2 and 3 only

(b)

2 and 4 only

(c)

1 and 3 only

(d)

1, 2 and 3 only

(a)

FII helps bring better management skills and technology, while FDI only brings in capital.

(b)

FII helps in increasing capital availability in general, while FDI only targets specific sectors.

(c)

FDI flows only into the secondary market, while FII targets primary market.

(d)

FII is considered to be more stable than FDI.

(a)

India has preference, for certain countries as regards receiving FDI

(b)

India has double taxation avoidance agreement with Mauritius

(c)

Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India

(d)

Impending dangers of global climate change prompt Mauritius to make huge investments in India

(a)

Only 1

(b)

Only 2

(c)

Both 1 and 2

(d)

Neither 1 nor 2