NRI Investment Quiz

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Questions and Answers

What is a Non Resident External Account (NRE) used for?

To keep income earned by NRI within India
To buy and sell financial assets
To store financial assets in electronic form
To keep income earned by NRIs outside India (correct)

What is a Non Resident Ordinary Account (NRO) used for?

To store financial assets in electronic form
To buy and sell financial assets
To keep income earned by NRI within India (correct)
To keep income earned by NRIs outside India

What is the purpose of a Demat account?

To keep income earned by NRIs outside India
To buy and sell financial assets
To keep income earned by NRI within India
To store financial assets in electronic form (correct)

What is NRI investment?

NRI investment refers to the tools and instruments used by Non-Resident Indians to invest their income earned within and outside India. Signup and view all the answers

What is the difference between NRE and NRO account?

NRE account is used to keep the income earned by NRIs outside India, while NRO account is used to keep the income earned by NRIs within India. Signup and view all the answers

What is a Demat and Trading account?

Demat account is used by investors to store their financial assets in electronic form, while Trading account is used by investors to buy and sell financial assets like shares, bonds, etc. Signup and view all the answers

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Study Notes

Types of NRI Bank Accounts

NRE (Non-Resident External) Account: A rupee-denominated account that allows NRIs (Non-Resident Indians) to maintain their foreign earnings in India, with the option to repatriate the funds back to their country of residence.
NRO (Non-Resident Ordinary) Account: A rupee-denominated account that allows NRIs to manage their income earned in India, such as rent, dividends, or interest on investments.

Investment and Trading Accounts

NRI Investment: An investment made by a Non-Resident Indian in Indian markets, including stocks, mutual funds, and real estate, with the aim of generating returns.
Demat (Dematerialized) Account: A digital account that holds electronic versions of shares and other securities, allowing for easy buying, selling, and tracking of investments.
Trading Account: A brokerage account that enables buying and selling of securities on stock exchanges, often linked to a Demat account.