Deck 8: Indias Balance of Payments and Foreign Trade: Part B

Question 1

Which of the following is not a part of capital account?

A)Lending to foreign countries
B)Direct investments in foreign countries
C)Transfer payments
D)None of the above

Answer 1

Transfer payments

Question 2

The principal reasons for the sluggishness of exports during 1980s was

A)Domestic supply constraints
B)Domestic demand constraints
C)International supply constraints
D)International demand constraints

Answer 2

Domestic supply constraints

Question 3

The overall exports of India (merchandise and service) during April-May 2019-20 are estimated to have a positive growth over the same period last year is

A)2.32 %
B)3.32%
C)4.32%
D)5.32%

Answer 3

4.32%

Question 4

Which of the following is an export item/items that shows a positive growth in May 2019?

A)Fertilizers
B)Vegetable oils
C)Transport equipment
D)Drugs & Pharmaceutical

Question 5

Which of the following an import item/items that shows a negative growth in May 2019?

A)Vegetable oils
B)Drugs & Pharmaceutical
C)Engineering goods
D)Electronic goods

Question 6

As per the latest press release by the RBI dated 14th June, 2019, exports in April 2019 registered a positive growth of

A)2.84%
B)3.84 %
C)4.84 %
D)5.84%

Question 7

As per the latest press release by the RBI dated 14th June, 2019, imports in April 2019 registered a positive growth of

A)2.46 %
B)3.46 %
C)4.46 %
D)5.46 %

Question 8

According to Exports data during 2011-12 (April-June), country with the largest importer of Indian goods was

A)UAE
B)China
C)Indonesia
D)Europe

Question 9

The widening of the Current Account Deficit during 2018-19 was on account

A)A higher trade deficit
B)A lower trade deficit
C)A higher fiscal deficit
D)A lower fiscal deficit

Question 10

India figures among the top ….global exporters and importers of services.

A)Five
B)Seven
C)Ten
D)Twenty

Question 11

The top two countries that remain the top sources of FDI to India during 2017-19 are

A)Singapore and Mauritius
B)USA and Brazil
C)France and Britain
D)Bangladesh and Nepal

Question 12

During the period of the first Five-Year Plan, India's imports mainly consisted of

A)Silver
B)Foodgrains
C)Pharmaceuticals
D)None of the above

Question 13

The net terms of trade refers to

A)The ratio of unit value index of imports to unit value index of imports.
B)The ratio of unit value of a commodity to per capita income
C)The ratio of unit value of a commodity of domestic country to the unit value of a commodity of foreign countries
D)The ratio of unit value of domestic exports to the unit value of foreign exports

Question 14

Foreign investment inflows help to mitigate the pressure on the overall

A)Balance of Trade
B)Balance of Payments
C)International trade
D)Fiscal deficit

Question 15

India's foreign trade policy during the late 1950s was often termed as

A)Import pessimism
B)Export pessimism
C)Import optimism
D)Export optimism

Question 16

The full form of EXIM is

A)Exchange and Import
B)Export-Import
C)Exported and Imported
D)None of the above

Question 17

Which of the following manages and monitors India's foreign exchange rate in order to correct deficit in BoP?

A)The Reserve Bank of India
B)The Government of India
C)The Securities and Exchange Board of India
D)The Ministry of External Affairs

Question 18

Under the Liberalized Exchange Rate Management System (LERMS), the rupee got a partial convertibility in the ratio

A)80:20
B)70:30
C)60:40
D)50:50

Question 19

Which of the following is/are not the policy measure/measures to correct deficit in Balance of Payments?

A)Fiscal and Monetary
B)Structural reforms
C)External financing
D)Issuing new currency

Question 20

Gold imports had increased during 1992-99 due the repeal of the Gold Control Order in

A)1990
B)1991
C)1992
D)1993

Question 21

Since 1950, India's foreign trade has undergone important changes signifying that it has entered into

A)Unilateral trade
B)Bilateral trade
C)Multilateral trade
D)None of the above

Question 22

The huge trade deficit India experienced during the 1980s was mainly due to

A)Slow growth of exports and fast rise in imports
B)Slow growth of imports and fast rise of exports
C)Increased in defence expenditure
D)Inflation

Question 23

The slow growth of exports during 2004-2007 was the result of

A)The depreciation of rupee against dollar
B)The appreciation of rupee against dollar
C)Increased in the general price level
D)None of the above

Question 24

The BoP situation does not deteriorate so long as

A)The primary deficit is under control
B)The trade deficit is under control
C)The fiscal deficit is under control
D)Monetary deficit is under control

Question 25

During the period of 1950-51, the traditional exports like tea, jute and cotton textiles formed

A)45 per cent of the total exports
B)50 per cent of the total exports
C)55 per cent of the total exports
D)60 per cent of the total exports