Indian Economy Test -19-Indian Economy-Quiz

Prelims 2020 Test Series-Indian Economy Test -19

Q 11.
Which of the following is not a current account transaction in the BoP?

a.)
a.) Tourism
b.)
b.) Banking
c.)
c.) Remittances
d.)
d.) Bank deposits

Q 12.
Select the correct sequential relationship among the following. Choose the correct answer using the codes:

         1. Capital inflows → appreciation of rupee→ export declines and import goes up

         2. Capital outflows →appreciation of rupee → export goes up and import declines

         3. Capital outflows → depreciation of rupee → exports goes up and import [WU1] declines

         4. Capital inflows → depreciation of rupee → export declines and import goes up.

Codes:

a.)
a.) 1 and 3 correct
b.)
b.) 2 and 4 correct
c.)
c.) 1 and 2 correct
d.)
d.) 2 and 3 correct

Q 13.
The highest form of economic integration is:

a.)
a.) European Community
b.)
b.) European Union
c.)
c.) European Monetary Union
d.)
d.) ASEAN

Q 14.
Refugee capital is:

a.)
a.) Investment made by refugees in the US
b.)
b.) Investment made by the UNCTAD in developing countries to empower the refugees
c.)
Aid given by the World Bank to promote the welfare of refugees in war tone countries
d.)
d.) Investment made by developed country investors in developing countries

Q 15.
Which of the following statements correctly explains India’s exchange rate system?

          1. The country’s exchange rate system is managed flexibility

          2. It is a hybrid exchange rate system

          3. The exchange rate is determined by the RBI

         Codes:

a.)
a.) 1, 2 and 3
b.)
b.) 2 and 3
c.)
c.) 1 and 2
d.)
d.) 1 and 3

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