(QUIZ) Economy MCQs : External Sector

(QUIZ) Economy MCQs : External Sector

 

1. Consider the following statements about Balance of payments (BoP).

  1. BoP is an over all statement of a country’s economic transactions with the rest of the world over some period.
  2. Trade account is a part of the capital account.

Which of the above statements is / are true.

  1. Both 1 & 2
  2. 1 only
  3. 2 only
  4. Neither 1 nor 2

2. Consider the following statements.

  1. India’s share in global trade in services is about 1.3%.
  2. Remittances to India have been on the rise over the past few years.
  3. Government of India has devalued its currency three times.

Which of the above statements is / are true.

  1. All of the above
  2. 2 & 3
  3. 1 & 3
  4. 1 & 2

3. Consider the following statements about the convertibility of Rupee.

  1. Convertibility for investment & borrowing abroad comes under capital account convertibility.
  2. Current account convertibility refers to freedom to convert domestic currency into foreign currency.
  3. India has current account convertibility.

Which of the above statements is / are true.

  1. 1 & 3
  2. 2 & 3
  3. All of the above
  4. 1 & 2

4. Consider the following statements.

  1. Capital account convertibility means there should be 100% FDI & FII allowed across all sectors.
  2. Tarapore committee had given its recommendations on Fuller convertibility.

Which of the above statements is / are true.

  1. 1 only
  2. 2 only
  3. Neither 1 nor 2
  4. Both 1 & 2

5. Consider the following statements.

  1. In the fixed exchange rate the Central Bank artificially & arbitrarily fixes the exchange rate which may not have any relation to market forces.
  2. Purchasing Power Parity (PPP) is a method used to calculate theoretically exchange rate between the currencies of different countries.

Which of the above statements is / are true.

  1. 1 only
  2. Both 1 & 2
  3. 2 only
  4. Neither 1 nor 2

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