Investment Models UPSC Questions

Economics

Investment Models MCQ Questions


1.
_____ in the macro-economic framework implies increase in capital stock, known as gross capital formation.
A.
Expenses
B.
Stock
C.
Investment
D.
Capital
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ANSWER :
C. Investment
2.
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 ?
UPSC - 2011
A.
FII helps bring better manage- ment skills and technology, whileFDI only brings in capital.
B.
FII helps in increasing capital avaliability 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.
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ANSWER :
B. FII helps in increasing capital avaliability in general ,while FDI only targets specific sectors.
3.
Which of the following would include Foreign Direct investment in India?
1. Subsidiaries of foreign companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment
Select the correct answer using the codes given below:
UPSC - 2012
A.
1, 2, 3 and 4
B.
2 and 4 only
C.
1 and 3 only
D.
1, 2 and 3 only
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ANSWER :
D. 1, 2 and 3 only
4.
What is/are the investment model has been followed by India in the past?
A.
Top down investment
B.
Bottom up investment
C.
Both a and b
D.
None of the above
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ANSWER :
C. Both a and b
5.
Post-reforms with larger role of _____ with new windows of untapped opportunities, resulting in plough back of profits translating into increased investment.
A.
Public sector
B.
Private sector
C.
Products
D.
Goods and services
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ANSWER :
B. Private sector
6.
What does venture capital mean?
UPSC - 2014
A.
A short-term capital provided to industries
B.
A long-term start-up capital provided to new entrepreneurs
C.
Funds provided to industries at times of incurring losses
D.
Funds provided for replacement and renovation of industries
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ANSWER :
B. A long-term start-up capital provided to new entrepreneurs