July 16, 2024
Which of the following measures will help in preventing rupee depreciation?
1. Selling dollars in foreign exchange market.
2. Increasing the repo rate by RBI.
3. Restricting FPI investments in India.
Which of the statements given is/are correct?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3 only
Consider the following statements:
1. Giving Income Tax concessions to exporters.
2. Designated more towns as Towns of Export Excellence.
Which of these measures can be implemented in order to reduce the deficit in Balance of Trade?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Internationalization of Rupee means?
  • (A) When they export they should accept payments in rupees
  • (B) When Indians import they should be able to pay for the imports in rupees
  • (C) Both (a) and (b)
  • (D) None
Which of the following are part of capital account transactions in BoP?
1 Purchase of capital equipment from abroad.
2. NRI deposits in Indian banks.
3. Foreign investment in Indian companies.
Select the answer using the codes:
  • (A) 1, 2 and 3
  • (B) 2 only
  • (C) 1 only
  • (D) 2 and 3 only
Which of the following statements will be considered as part of ‘Transfer Payments’?
1 Gift sent by an NRI to his friend in India.
2. Money sent by an Indian employee who has gone abroad temporarily to his family in India.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) None
Which of the following will be included in the balance of payments of India?
1 Gift received by a family in India from his NRI son.
2. Factor income of Indian residents from abroad.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
The BoP record the transactions in:
  • (A) Goods
  • (B) Services
  • (C) Assets
  • (D) All of the above
Consider the following statements:
1 Giving Income Tax concessions to exporters.
2. Setting up of towns of exports.
3. Devaluation of rupee.
Which of the above measures can be implemented in order to address the deficit in Balance of Trade (BoT) of India?
  • (A) 1 and 3 only
  • (B) 2 and 3 only
  • (C) 1 and 2 only
  • (D) 1, 2 and 3
Which of the following is/are correct?
1. Current Account includes non-factor income.
2. Invisible Trade includes factor income and non-factor income transactions.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2 
  • (D) Neither 1 nor 2
Which of the following is/are correct?
1 The reserve bank can sell foreign exchange when there is a deficit.
2. This is called official reserve sale.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2 
  • (D) Neither 1 nor 2
Consider the following statements:
1 Portfolio Investment is the cross-border transactions and positions involving equity or debt securities, other than direct investment.
2. Foreign Direct Investment consists of the purchase of an asset, which gives direct control to the buyer over the asset.
Which of the above given statement(s) is/are not correct?
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Which of the following is/are correct regarding Errors and Omissions?
1 It reflects the country’s inability to record all international transactions accurately.
2. Sometimes the balance of payment does not balance and is shown as error.
Select the answer using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) 1 and 2
  • (D) None
Consider the following statements:
1 Global financial exchanges are called independent when exchanges are made autonomously of the condition of the BoP.
2. These things are called 'over the details' in the BoP.
Select the correct statement(s) using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Consider the following statements:
1 The absolute of the Current Account should be offset with the completion of Capital Account in ideal circumstances.
2. BoP assists the government with assessing the expense rates for commodities and imports.
Select the incorrect statement(s) using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2
Consider the following statements:
1 Twin deficit refers to the situation when an economy suffers from both the fiscal deficit and the Capital Account Deficit.
2. Balance Of Payments (BOP) is also called as the equilibrium of global installments.
Select the correct statement(s) using the codes given below:
  • (A) 1 only
  • (B) 2 only
  • (C) Both 1 and 2
  • (D) Neither 1 nor 2

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