UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank

done Foreign Trade and Investment in India Total Questions - 104

• question_answer1)
  Which of the following organisation provides guarantee to exporters?
  A)
  EXIM Bank done clear
  B)
  Export Loan Guarantee Corporation done clear
  C)
  RBI done clear
  D)
  Commerce Ministry done clear
  View Solution play_arrow

• question_answer2)
        Which of the following does not form part of current account of Balance of Payments?
  A)
  Export and import of goods done clear
  B)
  Export and import of services done clear
  C)
  Income receipts and payments done clear
  D)
  Capital receipts and payments done clear
  View Solution play_arrow

• question_answer3)
        Which institution is known as 'soft loan window' of World Bank?
  A)
  IFC done clear
  B)
  IDA done clear
  C)
  IMF done clear
  D)
  Indian Development Forum done clear
  View Solution play_arrow

• question_answer4)
        Global capital-flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country?
  A)
  Commerical loans done clear
  B)
  Foreign Direct Investment done clear
  C)
  Foreign Portfolio Investment done clear
  D)
  External Commercial Borrowings done clear
  View Solution play_arrow

• question_answer5)
        The earnings of India from diamond export is quite high. Which one of the following factors has contributed to it?
  A)
  pre-independene stock-piling of diamonds in the country which are now exported done clear
  B)
  large production of industrial diamonds in the country done clear
  C)
  expertise available for cutting and polishing of imported diamonds which are then exported done clear
  D)
  as in the past, India produces huge quantity of gem diamonds which are exported done clear
  View Solution play_arrow

• question_answer6)
        Which one of the following modes of privatization is the most comprehensive and complete?
  A)
  introduction of private capital in public sector done clear
  B)
  contracting out management of public enterprises to the private sector done clear
  C)
  transferring ownership and management to the workers done clear
  D)
  transferring ownership and management to the private sector done clear
  View Solution play_arrow

• question_answer7)
        Which one of the following types of borrowings from the IMF has the softest servicing conditions?
  A)
  Second tranche loan done clear
  B)
  SAF done clear
  C)
  ESAF done clear
  D)
  Oil facility done clear
  View Solution play_arrow

• question_answer8)
        Which unit of valuation is known as 'paper gold'?
  A)
  Eurodollar                      done clear
  B)
  Petrodollar done clear
  C)
  SDR                  done clear
  D)
  GDR done clear
  View Solution play_arrow

• question_answer9)
        Which of the following is not one of the features of the Special Economic Zones (SEZ) being set up for promoting exports?
  A)
  The SEZ area will be treated as foreign territory for trade operations, duties and tariff. done clear
  B)
  No licence is required for import into the zone. done clear
  C)
  Foreign workers will be allowed free entry without visa restrictions. done clear
  D)
  There will be no routine examination by customs authorities of import/export cargo. done clear
  View Solution play_arrow

• question_answer10)
        Which of the following is considered lending for promotion of exports?
  A)
  Packing Credit done clear
  B)
  Overdraft done clear
  C)
  Cash Credit Account done clear
  D)
  Bill Discounting done clear
  View Solution play_arrow

• question_answer11)
        For National Manufacturing and Investment Zones (NMIZ), Special Economic Zone (SEZ) and EOUs (Exports Oriented Units), which of the following statement is true?
  A)
  NMIZs and EOUs will be located within SEZs done clear
  B)
  SEZs and EOUs will be located within NMIZs. done clear
  C)
  NMIZs are independent of SEZs and EOUs. done clear
  D)
  NMIZs and SEZs will be competitors in nature done clear
  View Solution play_arrow

• question_answer12)
        Both Foreign Direct Investment (PDI) 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 helps bring better management skills and technology, while FDI only brings in capital. done clear
  B)
  FII helps in increasing capital availability in general, while FDI only targets specific sectors. done clear
  C)
  FDI flows only into the secondary market while FII targets primary market done clear
  D)
  FII is considered to be more stable than FDI. done clear
  View Solution play_arrow

• question_answer13)
        A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why?
  A)
  India has preference for certain countries as regards receiving FDI done clear
  B)
  India has double taxation avoidance agreement with Mauritius done clear
  C)
  Most citizens of Mauritius have ethnic identity with India and so they feel secure to invest in India done clear
  D)
  Impending dangers of global climatic change prompt Mauritius to make huge investments in India done clear
  View Solution play_arrow

• question_answer14)
        TRIPS (Trade Related aspects of Intellectual Property Rights) agreements is administered by
  A)
  United Nations Conference on Trade and Development (UNCTAD) done clear
  B)
  United Nations Organization (UNO) done clear
  C)
  World Trade Organization (WTO) done clear
  D)
  World Bank (WB) done clear
  View Solution play_arrow

• question_answer15)
        Which is the role of the International Monetary Fund (IMF)?
  A)
  To implement and advance global trade agreements done clear
  B)
  To settle industrial and trade disputes between members done clear
  C)
  To help poorer countries with their economic development done clear
  D)
  To maintain international financial stability in global financial markets done clear
  View Solution play_arrow

• question_answer16)
        Which of the following is not an argument for protectionism?
  A)
  To protect infant industries done clear
  B)
  To increase the level of imports done clear
  C)
  To protect strategic industries done clear
  D)
  To improve the balance of payments done clear
  View Solution play_arrow

• question_answer17)
        Dumping in the context of international trade refers to :
  A)
  Exporting goods at prices below the cost of production done clear
  B)
  Exporting goods of inferior quality done clear
  C)
  Exporting goods only to re-import them at cheaper rates done clear
  D)
  Exporting goods without paying appropriate taxes in the receiving country done clear
  View Solution play_arrow

• question_answer18)
        Foreign Direct Investment involves:
  A)
  A speculator trying to make a profit by buying company shares on a foreign stock exchange. done clear
  B)
  A UK energy company buying territory abroad where it expects to find oil reserves. done clear
  C)
  A tourist purchasing foreign currency to spend on a holiday abroad. done clear
  D)
  A company signing an agreement with a wholesaler to distribute its products in foreign markets. done clear
  View Solution play_arrow

• question_answer19)
        Many a times we read about Hot Money in newspapers. Which among the following options rightly describes hot money?
  A)
  Hot money is useful and generally durable and is good for the country in all weathers done clear
  B)
  Hot money is dangerous and volatile and leaves the country in bad weather conditions done clear
  C)
  Hot money is good and adds to the development of the country & it comes from exports of services done clear
  D)
  Hot money is bad & useless as its arises from unusual activities like casinos, gambling, horse races, speculations etc. done clear
  View Solution play_arrow

• question_answer20)
        A systematic record of all economic transactions completed between residents of a country and the rest of the world in a year is known as..?
  A)
  Net Capital Flow             done clear
  B)
  Balance of Payment done clear
  C)
  Balance of Trade            done clear
  D)
  Absolute Flow done clear
  View Solution play_arrow

• question_answer21)
        Asian Financial Crisis of 1997 started from which of the following countries?
  A)
  Myanmar                       done clear
  B)
  Thailand done clear
  C)
  Cambodia         done clear
  D)
  Malaysia done clear
  View Solution play_arrow

• question_answer22)
        Many a times we read in the newspapers that when Foreign Capital is allowed to enter the country freely, it can affect the economy adversely. Which among the following is a correct reason for the above assumption?
  A)
  It affects the balance of payments of the country by adversely affecting the Current Account done clear
  B)
  It poses risks to the value of the country's currency as well as management of local liquidity done clear
  C)
  The foreign capital earns profit in the country which is repatriated done clear
  D)
  The Balance of Trade of the country is badly affected by Foreign Capital Inflows done clear
  View Solution play_arrow

• question_answer23)
        TANKAN is revision of the Industry Classification of the Short-term Economic Survey of Enterprises (usually quarterly) is used in following country?
  A)
  Japan                done clear
  B)
  South Korea done clear
  C)
  China                done clear
  D)
  All of them done clear
  View Solution play_arrow

• question_answer24)
        Which among the following is the most important source region of NRI remittances to India?
  A)
  North America done clear
  B)
  Europe done clear
  C)
  Asia Pacific done clear
  D)
  South America done clear
  View Solution play_arrow

• question_answer25)
        In context with the two way trade of India with different regions, which among the following region is India's largest trade partner?
  A)
  EU Region                      done clear
  B)
  Gulf Region done clear
  C)
  North America                done clear
  D)
  Latin America done clear
  View Solution play_arrow

• question_answer26)
  Which among the following will be a debit entry in India's balance of payments?
  A)
  Imports of goods by India. done clear
  B)
  Income of Indian investments abroad. done clear
  C)
  Receipts of transfer payments. done clear
  D)
  Exports of services by India. done clear
  View Solution play_arrow

• question_answer27)
        Which among the following countries is currently the biggest supplier of crude oil to India?
  A)
  Iran                               done clear
  B)
  Saudi Arabia done clear
  C)
  UAE                  done clear
  D)
  Nigeria done clear
  View Solution play_arrow

• question_answer28)
        IMF can grant loan to _______?
  A)
  Any sovereign country of the World done clear
  B)
  Any sovereign country of the World and Public Sector companies backed by Sovereign guarantee done clear
  C)
  Any Member country of IMF done clear
  D)
  Any Member country of IMF and Public Sector done clear
  View Solution play_arrow

• question_answer29)
        Companies backed by Sovereign guarantee of Member Country  In which among the following forms, the Special Drawing Rights (SDR) are kept as currency of International Monetary Fund?
  A)
  Paper Currency done clear
  B)
  Gold done clear
  C)
  Book Keeping Entry done clear
  D)
  A combination of all of three done clear
  View Solution play_arrow

• question_answer30)
        A new term Lourdes Treatment and Resuscitation Option (LTRO) was making news in context with which among the following?
  A)
  World Bank done clear
  B)
  International Monetary Fund done clear
  C)
  European Central Bank done clear
  D)
  Federal Reserve Bank of America done clear
  View Solution play_arrow

• question_answer31)
        Christine Lagarde is the head of which among the following international agencies / bodies?
  A)
  Asian Development Bank done clear
  B)
  Non-alignment Movement done clear
  C)
  International Atomic Energy Agency done clear
  D)
  International Monetary Fund done clear
  View Solution play_arrow

• question_answer32)
        AoA in context with World Trade Organization is_____?
  A)
  Article of Association done clear
  B)
  Agreement on Agriculture done clear
  C)
  Agreement on Association done clear
  D)
  Administration of Agriculture done clear
  View Solution play_arrow

• question_answer33)
        Areas which are engines for economic growth supported by quality infrastructure and complemented by an attractive fiscal package are known as
  A)
  Export Processing Zones done clear
  B)
  Duty Free Tariff Zones done clear
  C)
  Special Economic Zones done clear
  D)
  Technology Parks done clear
  View Solution play_arrow

• question_answer34)
        Consider the following statements.

  Most internationals agencies which fund development programmes in Indian on inter-government bilateral agreements, mainly provide.

  1. Technical assistance

  2. Soft loans which are required to be paid back with interest

  3. Grants, not required to be paid back

  4. Food assistance to alleviate poverty

  A)
  2 and 4 are correct done clear
  B)
  1, 2 and 3 are correct done clear
  C)
  1, 2 and 4 are correct done clear
  D)
  3 and 4 are correct done clear
  View Solution play_arrow

• question_answer35)
  FDI in Multi-Brand Retail Trade (MBRT) in all products is now permitted in India subject to

  1. a ceiling of 51%

  2. minimum amount to be brought in as FDI by the foreign investor is US  100 million.

  3. at least 50% of the procurement of manufactured/processed products should be sourced from 'small industries'.

  4. retail sales locations set-up only in cities with a population of more than 10 lakh.

  Select the correct answer using the codes given below
  A)
  1, 2, 3 and 4      done clear
  B)
  1 and 4 done clear
  C)
  Only 2               done clear
  D)
  1, 2 and 4 done clear
  View Solution play_arrow

• question_answer36)
        Which of the following were the aims behind the setting up of the World Trade Organization (WTO)?

  1. promotion of free trade and resource flows across countries

  2. protection of intellectual property rights

  3. managing balanced trade between different countries

  4. promotion of trade between the former East Bloc countries and the Western World

  A)
  1, 2, 3 and 4      done clear
  B)
  1 and 2 done clear
  C)
  2 and 3            done clear
  D)
  1 and 4 done clear
  View Solution play_arrow

• question_answer37)
        Consider the following statements in respect of the functions of World Trade Organisation (WTO):

  1. It seeks to make international trade free by establishing predictable and transparent ground rules.

  2. It promotes capital flow from developed to developing countries.

  3. It provides a forum for trade negotiations.

  4. It works as a neutral agency for settlement of trade disputes.

  Identify the correct statements from the above:
  A)
  1, 3 and 4          done clear
  B)
  2, 3 and 4 done clear
  C)
  1, 2, 3 and 4      done clear
  D)
  1, 2 and 3 done clear
  View Solution play_arrow

• question_answer38)
        Which of the following statement is not correct in relation to International Monetary Fund?

  1. India is a founder member of the IMF.

  2. IMF conducts regular review of India's economic status under Article IV.

  3. India?s quota in the IMF is more than 2 per cent

  4. Finance Minister is ex-officio Governor of the IMF.

  A)
  1 and 4             done clear
  B)
  3 only done clear
  C)
  1 only               done clear
  D)
  2 and 4 done clear
  View Solution play_arrow

• question_answer39)
  The New Economic Policy (1991) was launched in the background of the following economic indicators:

  1. India's foreign exchange reserves had fallen to US 1 billion.

  2. The fall of the Soviet Union had deprived India of almost a quarter of its export market.

  3. There was negative growth in real GDP.

  Indian rupee had to be devalued by 45 per cent.
  A)
  1, 2, 3 and 4      done clear
  B)
  1 only done clear
  C)
  1 and 2            done clear
  D)
  1, 2 and 3 done clear
  View Solution play_arrow

• question_answer40)
  Which of the following pairs are correctly matched?

  1. Increase in-monetary expansion

  2. Low import growth rate in India-Recession in Indian industry

  3. Euro-issues-Shares held by Indian companies in European countries

  4. Portfolio investment-Foreign institutional investors.

  A)
  1, 2 and 4                      done clear
  B)
  3 and 4 done clear
  C)
  1, 2 and 3          done clear
  D)
  1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer41)
        Which of the following would include Foreign Direct Investment in India?

  1. Subsidiaries of foreign companies in India

  2. Majority foreign equity holding in Indian companies

  3. Companies exclusively financed by foreign companies

  4. Portfolio investment

  Select the correct answer using the codes given below
  A)
  1, 2, 3 and 4      done clear
  B)
  2 and 4 done clear
  C)
  1 and 3             done clear
  D)
  1, 2 and 3 done clear
  View Solution play_arrow

• question_answer42)
        Which of the following is correct about 'Foreign direct investment' (FDI)?

  1. Through FDI a company buys a company in the target country.

  2. Through PDI a company expand operations of an existing business in the target country.

  3. FDI is an investment in the securities of another country such as stocks and bonds.

  4. FDI is an investment directly into production in a country by a company located in another country.

  A)
  1 and 2                         done clear
  B)
  1, 2 and 4 done clear
  C)
  1, 2 and 3         done clear
  D)
  1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer43)
        International Monetary Fund (IMF) argues that developing economies hold a massive stockpile of foreign exchange.

  Which could be the consequences of such stockpiling?

  1. A trade imbalance or major difference in value of imports/exports is generated between the developing and emerging economies and the rich countries.

  2. Such an imbalance is not a healthy sign.

  These imbalances have caused the current global economic crisis.

  3. Such stockpiling is responsible not only for problems in trade balances but leads to money laundering.

  A)
  1 only             done clear
  B)
  2 only done clear
  C)
  3 only             done clear
  D)
  1, 2 and 3 done clear
  View Solution play_arrow

• question_answer44)
        Consider the following statements relating to the World Trade Organization (WTO):

  1. The WTO deals with the global rules of trade between nations.

  2.  The goal of the WTO is to help producers of goods and services, exporters, and importers conduct their business.

  3. The WTO, which is a successor body of the General Agreement on Tariffs and Trade, came into being following the Uruguay Round of Negotiations.

  4. The WTO distances itself in framing of rules on trade in intellectual property rights.

  Which of the statements given above are correct?
  A)
  1, 2 and 3                      done clear
  B)
  2, 3 and 4 done clear
  C)
  1, 2 and 4                      done clear
  D)
  1 and 3 only done clear
  View Solution play_arrow

• question_answer45)
        Foreign Direct Investments are preferred over Capital Inflow. In this context, please consider the following.

  1. FDI brings in latest technology

  2. FDI does not involve large outflow

  3. FDI improves working efficiency

  Which is/are most suitable reason/reasons for the given statement?
  A)
  1 only                           done clear
  B)
  1 and 3 done clear
  C)
  1 and 2                         done clear
  D)
  All 1, 2 and 3 done clear
  View Solution play_arrow

• question_answer46)
  Consider the following:

  1.  Balance of trade

  2.  Net factor income

  3. Net transfer payments

  Which among the above make the part of the "Capital Account"?
  A)
  Only 1                          done clear
  B)
  1 & 2 done clear
  C)
  2 & 3                            done clear
  D)
  1, 2 & 3 done clear
  View Solution play_arrow

• question_answer47)
        Consider the following statements:

  1. Indian Rupee has faced 2 devaluations till now

  2. Indian Rupee faced highest devaluation in 1966

  Which among the above statements is / are correct?
  A)
  Only 1 is correct done clear
  B)
  Only 2 is correct done clear
  C)
  Both 1 and 2 are correct done clear
  D)
  Neither 1 nor 2 is correct done clear
  View Solution play_arrow

• question_answer48)
        Consider the following statements regarding the Indian Depository Receipts?

  1. An IDR declares ownership of shares of a Foreign Company

  2. The Shares in an IDR are held by an Indian Custodian

  3. Using IDR, the Indian Residents get a chance to invest in a listed foreign entity

  Which among the above statements is / are correct?
  A)
  Only 1     done clear
  B)
  Only 2 done clear
  C)
  Only 1 & 2      done clear
  D)
  Only 1 & 3 done clear
  View Solution play_arrow

• question_answer49)
        Market Economy:

  1. The role of market forces and competition is eliminated by law

  2. There is a high degree of competition in both commodity and factor markets

  3. Private gains are the main motivating and guiding force for carrying out economic activities

  Which among the above is/ are correct statements?
  A)
  Only 1 & 2 are correct done clear
  B)
  Only 2&3 are correct done clear
  C)
  All are correct done clear
  D)
  None of them is correct done clear
  View Solution play_arrow

• question_answer50)
        We read in the newspapers that the Foreign Direct Investments are preferred over the Capital Inflow. In this context, please consider the following:

  1. FDI brings in latest technology

  2. FDI does not involve large outflow

  3. FDI Improves efficiency of the economy

  Which among the above is / are most suitable reasons for the given statement?
  A)
  Only 1                           done clear
  B)
  Only 1 & 3 done clear
  C)
  Only 1 & 2                    done clear
  D)
  All 1, 2 & 3 done clear
  View Solution play_arrow

• question_answer51)
        Which of the following constitute the Capital Account?

  1. Foreign Loan.

  2. Foreign Direct Investment.

  3. Private Remittances.

  4. Portfolio Investment.

  Select the correct answer using the codes given below
  A)
  2 & 4   done clear
  B)
  1 & 3 done clear
  C)
  1 & 2                done clear
  D)
  1, 2 & 4 done clear
  View Solution play_arrow

• question_answer52)
        Consider the following:

  1. International Bank for Reconstruction and Development (IBRD)

  2. International Development Association (IDA)

  3. International Finance Corporation (IFC)

  4. Multilateral Investment Guarantee Agency (MIGA)

  5. International Centre for Settlement of Investment Disputes (ICSID)

  Which among the above constitute the World Bank group?
  A)
  1 2                                done clear
  B)
  1 2 3 done clear
  C)
  1 2 3 4              done clear
  D)
  1 2 3 4 5 done clear
  View Solution play_arrow

• question_answer53)
        Consider the following statements:

  1. The Foreign Exchange Management Act FEMA became an act on the 1st day of June, 2002.

  2. It replaced FERA.

  3. It made all offenses regarding foreign exchange civil offenses, as opposed to criminal offenses as dictated by FERA.

  Which of the statements given above is/are correct?
  A)
  1 and 2                         done clear
  B)
  2 and 3 done clear
  C)
  1 and 3            done clear
  D)
  None done clear
  View Solution play_arrow

• question_answer54)
        Consider the following statements:

  1. Kelkar Committee is associated to oil and gas.

  2. Kelkar Committee has to prepare a roadmap for enhancing import of oil and gas.

  Which of the statements given above is/are correct?
  A)
  1 only                           done clear
  B)
  2 only done clear
  C)
  1 and 2                         done clear
  D)
  None done clear
  View Solution play_arrow

• question_answer55)
        Consider the following statements:

  1. The Petrapole-Benapole border checkpoint controls the foreign trade between India and Bangladesh.

  2. Petra pole is on Bangladesh side and Benapole is on Indian side.

  Which of the statements given above is/are correct?
  A)
  1 only                           done clear
  B)
  2 only done clear
  C)
  1 and 2            done clear
  D)
  None done clear
  View Solution play_arrow

• question_answer56)
        Which of the following would include Foreign Direct Investment in India?

  1. By incorporating a wholly owned subsidiary or company anywhere

  2. By acquiring shares in an associated enterprise

  3. Through a merger or an acquisition of an unrelated enterprise

  4. Participating in an equity joint venture with another investor or enterprise

  Select the answer using the codes given below.
  A)
  1 and 2                         done clear
  B)
  2, 3 and 4 done clear
  C)
  1, 3 and 4         done clear
  D)
  1, 2, 3 and 4 done clear
  View Solution play_arrow

• question_answer57)
  Consider the following statements:

  1. International Monetary Fund (IMF) was initiated in 1944 at the Bretton Woods Conference and formally created in 1945.

  2. IMF grants loan to member country and other developing countries.

  Which of the statements given above is/are correct?
  A)
  1 only                           done clear
  B)
  2 only done clear
  C)
  1 and 2            done clear
  D)
  None done clear
  View Solution play_arrow

• question_answer58)
        Consider the following statements regarding the Federation of Indian Export Organisation (FIEO):

  1. FIEO was set up in 1965 under the aegis of Ministry of Commerce.

  2. It is an apex body of Export Promotion Organisations

  3. FIEO renders an integrated package of services to various organizations connected with export promotion.

  Which of the statements given above is/are correct?
  A)
  1 only                           done clear
  B)
  2 only done clear
  C)
  1 and 2             done clear
  D)
  1, 2 and 3 done clear
  View Solution play_arrow

• question_answer59)
  Match the following countries with its currencies:

  	Country		Currency
  I.	US	a.	Yen
  II.	China	b.	Dollar
  III.	Japan	c.	Pound
  IV.	Britain	d.	Yuan

  A)
  I - b,   II - d,   III - a,   IV - c done clear
  B)
  I - a,   II - d,   III - b,   IV - c done clear
  C)
  I - b,   II - c,   III - a,   IV - d done clear
  D)
  I - a,   II - c,   III - b,   IV - d done clear
  View Solution play_arrow

• question_answer60)
        Which sentence is correct regarding foreign exchange?

  I. Foreign exchange reserves in India comprises of 6 elements.

  II. Foreign exchange management can be done in three possible ways: Fixed currency regime, floating currency regime and managed exchange rates.

  III. Silver is an element of foreign exchange reserve

  A)
  I & II                             done clear
  B)
  Only II done clear
  C)
  Only III             done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer61)
  Which sentences are correct regarding special drawing rights?

  I. It was created in 1980

  II. It is also known as "paper gold".

  III. Its value is based on a basket of five key international key currencies and SDRs can be exchanged for freely usable currencies

  A)
  Only II                          done clear
  B)
  I & III done clear
  C)
  II & III               done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer62)
        Which of the statement is correct according to Fixed Exchange rates?

  1. Fixed rates are currency values which are tied to a precious metal such as gold, or anchored to another currency, like the US Dollar.

  II. Under a fixed system, a currency can rise or fall due to changes in demand or supply of currencies on the foreign exchange market.

  III. Under this imports and exports can readjust to move the balance of payments back towards a desirable equilibrium.

  A)
  I & II                             done clear
  B)
  I & III done clear
  C)
  II & III              done clear
  D)
  Only I done clear
  View Solution play_arrow

• question_answer63)
        Why did the fixed exchange rate system collapsed?

  1. The buildup of US debts abroad as a result of the need to fund the war in Vietnam

  II. Inflation in the USA

  III. Growing doubts about the stability of the US.

  A)
  Only I                           done clear
  B)
  I & II done clear
  C)
  II & III               done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer64)
  Match the following percentage of world trade in different years of India:

  	Year		Percentage
  I.	1950?s	a.	0.59%
  II.	1990?s	b.	2%
  III.	2015	c.	1.78%

  A)
  I - b,   II - c,   III - a done clear
  B)
  I - c,   II - a,   III - b done clear
  C)
  I - a,   II - b,   III - c done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer65)
        What are the categories in which India export?

  I. Agricultural and Allied Products

  II. Mineral Fuel and Lubricants

  III. Coal and petroleum

  A)
  Only II                          done clear
  B)
  I & II done clear
  C)
  Only III             done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer66)
        What are the facts regarding structural change in India?s export since 1991?

  I. There are indications that during 1990s some of Indian exports have moved upwards in value addition chain whereby instead of exporting raw materials the country has switched over to export of processed goods.

  II. There were significant compositional shift within the major manufactured product groups such as engineering goods chemicals and allied products etc.

  A)
  Only II                          done clear
  B)
  Only I done clear
  C)
  Both I & II        done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer67)
  Match the following export products of India with the Percentage they constitute:

  	Products		Percentage
  I.	Petroleum	a.	4%
  II.	Gems & Jewellery	b.	7.8%
  III.	Transport & Equipment?s	c.	20.4%
  IV.	Machinery	d.	16.3%

   
  A)
  I - c,   II - d,   III - b,   IV - a done clear
  B)
  I - a,   II - c,   III - b,   IV - d done clear
  C)
  I - b,   II - a,   III - d,   IV - c done clear
  D)
  I - d,   II - c,   III - a,   IV - b done clear
  View Solution play_arrow

• question_answer68)
        Which statements are true regarding India's Import?

  I. In 1947-48 the main items of India's imports were machineries, oil, grains, cotton, cutlery, hardware implements, chemicals, etc.

  II. They constituted 70% of India's imports

  A)
  Only II                          done clear
  B)
  Only I done clear
  C)
  Both I & II        done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer69)
  What is meant by term Balance of Payment?

  I. Those transactions arising out of exports and imports (the visible items)

  II. It is astatistical statement of all transactions made between one particular country and all other countries during a specified period of time

  III. This account is the summary of all international trade transactions of the domestic country in one year

  A)
  I & III                            done clear
  B)
  Only I done clear
  C)
  Only II              done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer70)
        What is meant by term Balance of Trade?

  I. Those transactions arising out of exports and imports (the visible items)

  II. It is a statistical statement of all transactions made between one particular country and all other countries during a specified period of time

  III. This account is the summary of all international trade transactions of the domestic country in one year

  A)
  I & III                            done clear
  B)
  Only I done clear
  C)
  Only II              done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer71)
        Which statement is correct regarding Current account?

  I. Those transactions arising out of exports and imports (the visible items)

  II. It is a statistical statement of all transactions made between one particular country and all other countries during a specified period of time

  III. This account is the summary of all international trade transactions of the domestic country in one year

  A)
  I & II                             done clear
  B)
  Only I done clear
  C)
  II & III                           done clear
  D)
  Only III done clear
  View Solution play_arrow

• question_answer72)
        Which statement is incorrect regarding balance of payment?

  I. BoP compares the dollar difference of the amount of exports and imports, including all financial exports and imports.

  II. A negative balance of payments means that more money is flowing out of the country than coming in and vice versa.

  III. The balance of payment is maintained by State Bank of India

  A)
  I & III                            done clear
  B)
  Only III done clear
  C)
  II & III               done clear
  D)
  Only I done clear
  View Solution play_arrow

• question_answer73)
        Match the following current accounts with their examples:

  	CA
  I.	Visible Trade	a.	Gifts
  II.	Invisible Trade	b.	Tea
  III.	Unilateral Transfer	c.	Insurance

  A)
  I ? b      II ? c     III ? a done clear
  B)
  I ? a      II ? c     III ? b done clear
  C)
  I ? c      II ? a     III ? b done clear
  D)
  None of these done clear
  View Solution play_arrow

• question_answer74)
        Which statement is correct regarding capital account?

  I. On the credit side of this account receipt of foreign exchange due to Foreign Direct Investment (FDI) Foreign Capital Investment (FCI) and Foreign Borrowing (FB) is recorded.

  II. On the debit side of capital account payment of foreign exchange due to Direct Investment Abroad (DIA) Portfolio Investment Abroad (PIA) and Foreign Lending (FL) is recorded.

  A)
  Only II                          done clear
  B)
  Only I done clear
  C)
  Both I & II        done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer75)
        Which of the below statements are correct?

  I. Reverse account balance makes an adjustment between current account balance and capital account balance.

  II. If surplus in the Capital Account is more than deficit in the Current Account, there is net increase in the Forex Reserves of the country at the end of the year.

  III. If deficit in the current account is more than surplus in the Capital Account then there is net decrease in Foreign Reserves of the country at the end of the year.

  A)
  I & II                             done clear
  B)
  I & III done clear
  C)
  Only II             done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer76)
        Which statement is correct regarding balance of payment crises?

  I. If international reserves of a country are not enough to balance a combined deficit in current and capital account on a sustained basis, then the phenomenon is called a BoP crisis.

  II. It can be tackled by exporting more or by limiting imports through tariffs, quotas, etc. Contractionary fiscal and monetary policies can also tackle the crisis through lower import demand with fall in average income levels.

  III. Another short term solution is currency devaluation which encourages exports and discourages costlier imports.

  A)
  Both I & II         done clear
  B)
  Only I done clear
  C)
  II & III               done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer77)
  Which statement is incorrect regarding India's balance of payment?

  I. 1994-95 was the year of the acute BOP crisis in India.

  II. India then had foreign exchange reserve of mere 3 billion dollar

  III. This crisis led to the massive changes in the country's economic policy, popularly known as the Structural Adjustment Program or New Economic Policy (NEP) regime, focusing on liberalization and global ization of the economy.

  A)
  I & III                            done clear
  B)
  I & II done clear
  C)
  Only III            done clear
  D)
  Only I done clear
  View Solution play_arrow

• question_answer78)
        What conditions are correct that came with the medium term loan given by IMF to India for restructuring of the economy?

  I. Government expenditure to be cut by 20% per annum

  II. Devaluation of rupee by 22%.

  III. Excise duty to be increased by 40% .Q

  IV. Custom duty to be cut drastically from the peak of 130% to 30%

  A)
  II & IV            done clear
  B)
  I & II done clear
  C)
  III & IV            done clear
  D)
  Only II done clear
  View Solution play_arrow

• question_answer79)
        What are the factors on which import substitution strategy was based on?

  I. Non price

  II. Physical interventionist policies like licensing. Quotas and other physical restrictions on imports

  A)
  only II                           done clear
  B)
  Only I done clear
  C)
  Both I & II                     done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer80)
  Why there was the need for export promotion in India?

  I. Primary products exporting countries have an unfavourable term of trade. The earnings from primary product exports were low and unstable

  II. Secondly, the quality of Indian products was not up to the world standards due to which we could not sustain markets.

  III. Third, only residue products were mainly exported. The fact that export earnings also contribute to economic development was overlooked.

  A)
  I & III                            done clear
  B)
  II & III done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer81)
        Which of the below statements are correct regarding exchange trade?

  I. The value of rupee was managed by the state bank

  II. The strict foreign exchange controls also encouraged hawala trade

  III. India followed a strongly inward looking policy, laying stress on import substitution

  A)
  Only I                           done clear
  B)
  Both II & III done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer82)
        Choose the correct sentence regarding the trade policy:

  I. Mahalanobis strategy adopted during the First plan

  II. Export increased at an average rate of 29 per cent per annum in dollar terms between 1986 and 1990

  III. A combination of factors such as bad policy, weak government and external factors led to the decline of this performance to nine per cent in 1990-91 and 4 per cent in the subsequent years.

  A)
  Only III                         done clear
  B)
  I & II done clear
  C)
  II & III               done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer83)
        What was the main reason of introducing trade reforms in 1991?

  I. Make exports competitive

  II. Unshackle foreign trade from the clutches of a control regime

  III. Allow import of most goods using only tariff as a restraint

  A)
  I & II                             done clear
  B)
  Only II done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer84)
        What are the key features of trade policy?

  I. India to be made a significant participant in world trade by 2025

  II. Merchandize exports from India (MEIS) to promote specific services for specific Markets Foreign Trade Policy

  III. FTP would reduce export obligations by 50% and give boost to domestic manufacturing

  A)
  I & II                             done clear
  B)
  Only II done clear
  C)
  II & III               done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer85)
        Which is the correct statement according to FTP 15 - 20?

  I. FTP 2015-20 introduces two new schemes, namely "Merchandise Exports from India Scheme (MEIS)" and "Services Exports from India Scheme (SEIS)"

  II. These schemes (MEIS and SEIS) replace multiple schemes earlier in place, each with different conditions for eligibility and usage.

  III. Incentives (MEIS & SEIS) to be available for SEZs also e-Commerce of handicrafts, handlooms, books etc., eligible for benefits of MEIS.

  IV. FTP benefits from both MEIS & SEIS will be extended to units located in SEZs.

  A)
  I & II                             done clear
  B)
  II & IV done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer86)
        Which statement is not correct according to MEIS?

  I. Agricultural and village industry products to be supported across the globe at rates of 3 % and 5 % under MEIS.

  II. Higher level of support to be provided to processed and packaged agricultural and food items under MEIS.

  A)
  Only I                           done clear
  B)
  Only II done clear
  C)
  Both I & II        done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer87)
        What are the objectives of SEZ act?

  I. Generation of additional economic activity.

  II. Promotion of exports of goods & services.

  III. Promotion of investment from domestic and foreign sources.

  IV. Creation of employment opportunities

  A)
  I & II                             done clear
  B)
  II & IV done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer88)
        Which points are correct regarding SEZ act?

  I. Exemption to SEZ developer and units from Minimum Alternate Tax.

  II. Constitution of an authority for each SEZ with a view to providing greater administrative, financial and functional autonomy to these zones.

  III. Establishment of designated courts and a single enforcement agency to ensure speedy trial and investigation of offences committed in SEZs.

  A)
  I & II                             done clear
  B)
  Only II done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer89)
        Consider the following statements:

  I. Agriculture, horticulture, poultry, fisheries and dairying have been included in export-oriented units.

  II. Export processing zone units have also been allowed to export through trading and star trading houses and can have equipment on lease.

  Which of the following statements are true regarding Export Units:
  A)
  Only II                          done clear
  B)
  Only I done clear
  C)
  Both I & II        done clear
  D)
  None of the above done clear
  View Solution play_arrow

• question_answer90)
        Consider the following statements:

  I. These zones were created to develop such an environment in the economy which may provide capability of facing international competition.

  II. The Export Processing Zone (EPZs) set up as enclaves, separated from the Domestic Tariff Area by fiscal barriers, were intended to provide a competitive duty free environment for export production

  III. There are total 10 EPZs in our country

  Which statement is/are correct regarding export processing zone?
  A)
  Only III                         done clear
  B)
  I & II done clear
  C)
  II & III               done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer91)
  Match the States with their cities where there are EPZs in India:

  	States		City
  I.	Gujarat	a.	Noida
  II.	West Bengal	b.	Kandia
  III.	U.P West	c.	Faeta (it is a placein Bengal which is mentioned in the chapter)

   
  A)
  I - b,   II - c,   III - a done clear
  B)
  I - a,   II - c,   III - b done clear
  C)
  I - b,   II - a,   III - c done clear
  D)
  I - c,   II - b,   III - a done clear
  View Solution play_arrow

• question_answer92)
        Which statement is correct regarding export oriented units?

  I. Since 1981, the Government introduced a complementary plan of EPZ (Now converted into SEZ) scheme for promoting export units.

  II. Under this scheme the Government provides various incentives to increases the production capacity of these units so as to increase exports of the country.

  III. This scheme offers a wider source of raw materials, hinterland facilities, availability of technological skills, existence of an industrial base and the need for a larger area of land for the project.

  A)
  Only III                         done clear
  B)
  I & II done clear
  C)
  II & III               done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer93)
        Which statement is correct regarding Export houses?

  I. To increases the marketable efficiency of exporters, the Government introduced the concept of export houses, trading houses and star trading houses.

  II. Those registered exporters who have shown good export performances over past few years have been given the status of export houses, and trading houses.

  III. Units having such classification are required to achieve the prescribed average export performance level and earning of foreign exchange.

  A)
  Only III                         done clear
  B)
  I & II done clear
  C)
  II & III                           done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer94)
        Which statement is correct regarding EPIP?

  I. EPIP was introduced in 1996

  II. It is sponsored by centre

  III. It provides 80% grant to the state

  A)
  II & III                           done clear
  B)
  Only I done clear
  C)
  I & II                 done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer95)
  Match the area with the state where there are EPIPs in India:

  	Column I		Column II
  I.	Rajasthan	a.	Amingaon
  II.	Maharashtra	b.	Sitapura
  III.	Kerala	c.	Ambarnath
  IV.	Assam	d.	Kakkinad

  A)
  I - b,   II - c,   III - d,   IV - a done clear
  B)
  I - a,   II - c,   III - d,   IV - b done clear
  C)
  I - d,   II - c,   III - b,   IV - a done clear
  D)
  I - c,   II - b,   III - a,   IV - d done clear
  View Solution play_arrow

• question_answer96)
        Which statement is correct regarding FDI?

  I. FDI is a non-debt capital flow, is a leading source of external financing, especially for the developing economies.

  II. It not only brings in capital and technical know- how but also increases the competitiveness of the economy.

  III. Overall it supplements domestic investment, much required for sustaining the high growth rate of the country.

  IV. Since 2000, significant changes have been made in the FDI policy regime by the government to ensure that India becomes an increasingly attractive and investor-friendly destination.

  A)
  I & II                             done clear
  B)
  II & III done clear
  C)
  Only IV             done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer97)
        Are the statements given below the subset of the third category of FDI?

  I. It consists of sectors where automatic approval is granted for FDI (often foreign equity participation less than 100 per cent)

  II. It consists of sectors where prior approval from the Foreign Investment Approval Board (FIPB) is required

  A)
  Only I                           done clear
  B)
  Only II done clear
  C)
  Both I & II done clear
  D)
  Neither I & II done clear
  View Solution play_arrow

• question_answer98)
        What are the sectors with 100% FDI?

  I. Agriculture

  II. Advertising

  III. Air transport service

  IV. Drugs and pharmaceuticals

  A)
  I & II                             done clear
  B)
  II & IV done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer99)
  Match the following sectors with the percentage of FDI:

  	Sectors		Percentage
  I.	Private sector banking	a.	49%
  II.	Defence	b.	20%
  III.	Print media	c.	74%
  IV.	Public sector banks	d.	26%

  A)
  I - c,   II - a,   III - d,   IV - b done clear
  B)
  I - d,   II - a,   III - c,   IV - b done clear
  C)
  I - a,   II - a,   III - c,   IV - b done clear
  D)
  I - c,   II - d,   III - a,   IV - b done clear
  View Solution play_arrow

• question_answer100)
        Foreign exchange reserves of India comprise of which elements?

  I. Gold

  II. Special Drawing Rights (SDR)

  III. Foreign currency assets

  IV. Reserve Tranche Position (RTF) in the IMF

  A)
   I & II                            done clear
  B)
  II & III done clear
  C)
  Only III            done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer101)
        Which statement is correct regarding FDI?

  I. The success of foreign exchange management by RBI can be seen in the fact that from US 5.8 billion in March 1991 (enough to meet the import requirements for three weeks) the country's reserves have grown to around US  352 billion by December 2015.

  II. It is pertinent to note here that some of the increase in the reserve is attributed to the weakness of the dollar in the post-Iraq war scenario.

  A)
  Only I                           done clear
  B)
  Only II done clear
  C)
  Both I & II done clear
  D)
  Neither I & II done clear
  View Solution play_arrow

• question_answer102)
        Imports of India are classified into:

  I. Petroleum Products

  II. Pearls and Precious Stones

  III. Iron and Steel

  IV. Fertilizers

  A)
  I & II                             done clear
  B)
  Only II done clear
  C)
  Only IV             done clear
  D)
  All the above done clear
  View Solution play_arrow

• question_answer103)
  Match the following imports of products with the percentage:

  	Column I		Percentage
  I.	Gold	a.	7.3%
  II.	Petroleum	b.	12.7%
  III.	Electronic goods	c.	30.7%

   
  A)
  I - b,   II - c,   III - a done clear
  B)
  I - a,   II - c,   III - b done clear
  C)
  I - c,   II - b,   III - a                done clear
  D)
  I - b,   II - a,   III - c done clear
  View Solution play_arrow

• question_answer104)
        Which of the following is/are not FDI policy change(s) after 2010?

  1. Permission of 100 percent FDI in automotive sector.

  2. Permitting foreign airlines to make FDI up to 49 percent

  3. Permission of up to 51 percent FDI under the government approval route in multi-brand retailing, subject to specified conditions

  4. Amendment of policy on FDI in single-brand product retail trading for aligning with global practices

  Select the correct answer using the code given below:
  A)
  1 only               done clear
  B)
  2 and 4 only done clear
  C)
  1 and 2 only                  done clear
  D)
  1, 2 and 3 only done clear
  View Solution play_arrow