2020 Economy - Foreign Direct Investment (FDI) and Investment Policy

21. With reference to the above passage, the following assumptions have been made : 1. Relying on foreign investment in the long run is not an economically sound policy. 2. Policies must be undertaken to reduce volatility in foreign private investment. 3. Policies must be undertaken to strengthen domestic private investment. 4. Public investment should be given priority over private investment. 5. Substantial public investment in education and health should be undertaken. Which of the above assumptions is/are valid?

• 1, 2 and 4
• 1, 3 and 5
• 2, 4 and 5
• 3 only