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Social Science (087) — AI-generated practice question

AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.

Q1. [1] straightforward exam-ready
The money spent by MNCs to buy assets such as land, buildings, machines and equipment in another country is called: (A) Domestic investment (B) Trade surplus (C) Foreign investment (D) Portfolio investment
  1. A Domestic investment
  2. B Trade surplus
  3. C Foreign investment
  4. D Portfolio investment
Generated by claude-sonnet-4-6 · 2026-06-26 13:24 · grounding rag
Model Answer

(C) Foreign investment

Money spent by MNCs to buy assets such as land, buildings, machines and equipment in another country is called foreign investment.

Source: Interlinking Production Across Countries, Chapter 4

Explanation

The textbook explicitly states: "The money that is spent to buy assets such as land, building, machines and other equipment is called investment. Investment made by MNCs is called foreign investment." Domestic investment refers to investment within one's own country; portfolio investment involves buying shares/stocks, not physical assets. Trade surplus is unrelated. Examiners expect the correct term with a brief justification.

Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.