Disruptive Entrepreneur Elon Musk attended a Pro Kabaddy Match during his visit to India. He also purchased a Kabaddi Kit from the organizers. In his return, he travelled by Air India. The amount he paid for the Kit purchase and air travel would be classified in India’s balance of payment account as:
Match List I (Types of Investment) with List II (nature of Investment) and select the correct answer using the code given below the Lists:
List I List II
(Types of investment) (Nature of Investment)
A. Direct foreign 1. Purchase of the countries
Investment stocks, bonds and currencies by foreigners.
B. Foreign portfolio 2. Investments in productive
Investment assets of the country by foreigners
C. Commercial Borrowings 3. Raising loans from foreign financial
D. Foreign Institutional 4. Provision of financial assistance by a
Assistance. Foreign government/institution
If the Rupee undergoes steep depreciation against the US Dollar and other leading currencies, which of the following effects may occur for the domestic economy? Select the correct answer using the codes given below.
1. Indian commodities become cheaper in the international market.
2. Domestic corporates’ external debt burden in Rupee terms goes up.
3. The inflation risk from the trade channel increases.