Q. The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called?
Answer: Foreign Indirect Investment
Notes: The correct answer is "Foreign Indirect Investment." This term refers to investments made by Foreign Institutional Investors (FIIs) in the Indian stock market, primarily through shares and bonds. Unlike Foreign Direct Investment (FDI), which involves direct ownership and control of a business, Foreign Indirect Investment allows for more fluid capital movement without direct management involvement. As of 2021, FIIs have been important contributors to India's capital markets, influencing stock prices and market liquidity.