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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 ?

A FII is considered to be more stable than FDI
B FDI flows only into the secondary market, while FII targets primary market
C FII helps bring better management skills and technology, while FDI only brings in capital
D FII helps in increasing capital availability in general, while FDI only targets specific sectors
Answer & Explanation
Option: [D]

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