Practice Test

Q1) "World Economic Outlook" report is published by - Show Answer

Q2) 'World Investment Report' is published by- Show Answer

Q3) Ministry of HRD has announced to hike FDI limit in Education to - Show Answer

Q4) Who was the Chairman of 12th Finance Commission? Show Answer

Q5) ECOMARC is a symbol related to- Show Answer

Q6) What is cross border exchange ? Show Answer

Q7) Which of the following organisation provides guarantee to exporters? Show Answer

Q8) What is 'Mercousr'?
Show Answer

Q9) Which institution is known as'soft loan window' of World Bank? Show Answer

Q10) Global capital flow to developing countries increased significantly during the nineties/ In view of the East Asian financial crisis and Latin american experience, which type of inflow is good for the host country ? Show Answer

Q11) In the last one decade, which one among the following sector has attracted the highest foreign direct investment inflows into India ? Show Answer

Q12) The earnings of India from diamond export is quite high. Which one of the following factors has contributed to it? Show Answer

Q13) Which one of the following modes of privatization is the most comprehensive and complete? Show Answer

Q14) Which one of the following pairs is correctly matched?
Show Answer

Q15) Which one of the following regions of the world supplies the maximum of our imported commodities ( in terms of rupee value) Show Answer

Q16) Which one of the following type of borrowings from the IMF has the softest servicing conditions? Show Answer

Q17) On the basis of the size and composition of external debt, World Bank has classified India as Show Answer

Q18) In dollar terms India's export partners are countries belonging to : Show Answer

Q19) India has recorded a positive balance of payment on current account in recent years. Which of the following can be a possible explanation for this? Show Answer

Q20) It recommended that foreign exchange reserve should not be below the requirement of import for: Show Answer

Q21) Tarapore Committee recommended that before capital account was made convertible the rate of inflation should be brought down for three years with in: Show Answer

Q22) Among export item from India, manufactured goods account for______% of total export Show Answer

Q23) Which country accounts for the largest imports from india?
Show Answer

Q24) Which unit of valuation is known as ' paper gold'? Show Answer

Q25) India's debt is what percentage of GDP? Show Answer

Q26) Which country had largest share of FDI in India during the last decade? Show Answer

Q27) Which of the following is not one of the features of the Special Economic Zones(SEZ) being set up for promoting exports? Show Answer

Q28) Which entity holds the Number I position among India international trading companies ? Show Answer

Q29) Government has recently allowed 100% Foreign Direct Investment (FDI) in many strategic sectors. Which of the following sectors has not been opened up? Show Answer

Q30) Foreign Direct Investment (FDI) in India has shown a distinct preference for : Show Answer

Q31) Which of the following is not part of the 'second generation of economic reforms'identified by the government ? Show Answer

Q32) Which of the following is not a function of the Exim Bank of India ? Show Answer

Q33) Which organisation is meant to ensure export from India ? Show Answer

Q34) Which of the following is consider leading for promotion of exports? Show Answer

Q35) Which statement of the following is true for IMF? Show Answer

Q36) For National Manufacturing and Investment Zones(NMIZ), Special Economic Zone(SEZ) and EOUs (Export Oriented Units), which of the following statements is true? Show Answer

Q37) Which of the following is/are treated as artificial currency?
Show Answer

Q38) In term of economy, the visit by foreign nationals to witness the XIX commonwealth games in India amounted to Show Answer

Q39) Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? Show Answer

Q40) Participatory Notes (PNs) are associated with which one of the following ? Show Answer

Q41) A great deal of foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like UK and France. Why ? Show Answer

Q42) Indian export are restricted to Show Answer

Q43) TRIPS (Trade Related aspects of Intellectual property Right ) agreements is administered by Show Answer

Q44) Which is the role of the international Monetary Fund(IMF) ? Show Answer

Q45) Which of the following is not an argument for protectionism? Show Answer

Q46) The term of trade measure: Show Answer

Q47) Foreign aid will : Show Answer

Q48) Balance of trade is known to be favorable when Show Answer

Q49) Dumping in the context of international trade refers to : Show Answer

Q50) Free internationals trade leads to equalization of Show Answer

Q51) Foreign Direct Investment (FDI) involves: Show Answer

Q52) Which of the following could be defined as a multinational company ? Show Answer

Q53) A developing economy is experiencing a short-term collapse in the value of its currency. From which of the following institutions is it most likely to receive assistance ? Show Answer

Q54) The balance of payment equals:
Show Answer

Q55) Foreign investors have succeeded best when they have: Show Answer

Q56) In 2007, which of the following is/are correct about SEZ ?
1) Area capped at 5,000 hectares.
2) There is no cap on number of SEZs.
Show Answer

Q57) Consider the following organizations.
1) International Bank for Reconstruction and Development
2) International Finance corporation
3) International Fund for Agricultural Development
4) International Monetary Fund
Which of these are agencies of the united Nations? Show Answer

Q58) Consider the following statements.
Most international agencies which fund development programme in Indian on inter-government bilateral agreements, mainly provide.
1) Technical assistance
2) Soft loans which are required to be paid with interest
3) Grants, not required to be paid back
4) Food assistance to alleviate poverty Show Answer

Q59) Consider the following statements.
1) The World Intellectual Property Organization (WIPO) is a specialized agency of United Nations system of Organization
2) WIPO has its headquarters at Rome.
3) The Trade Related Aspect of intellectual Property Rights (TRIPs) Agreement is binding on all WTO members,
4) Least developed country members of WTO are not required to apply the provisions of TRIPs agreement for a period of 20 years from the general date of application of the agreement.
Which of theses statements are correct ? Show Answer

Q60) Consider the following statements.
The Indian Rupees is fully convertible
1) in respect of current account of balance of payment
2) in respect of capital account of balance of payment
3) into gold
Which of these statements is/are correct ? Show Answer

Q61) Consider the following statements about the European Union
1) European Union was known earlier as the European Community.
2) The Single European Act (1986) and the Maastricht Treaty were milestones in its formation.
3) Citizen of European Union countries enjoy dual citizenship
4) Switzerland is a member of the European Union
Which of the above statements are correct ? Show Answer

Q62) Which of the following were the aims behind the security up of the World Trade Organization (WTO) ?
1) promotion of free and resource flows across countries
2) protection of intellectual property rights
3) managing balanced trade between different countries
4) promotion of trade between the former East Bloc countries and the Western World.
Show Answer

Q63) Small-scale industries in India are supposed to be
1) labour intensive
2) capital intensive
3) lanour light
4) Skill light
Choose your answer from the following codes Show Answer

Q64) Which among the following was not a characteristic of our economy at the time of independence ?
1) India was importing capital and consumer goods
2) India export primary commodities and industrial materials
3) India was exporting food products
4) India was importing food products
Show Answer

Q65) Consider the following statements in respect of the functions of the world Trade Organisation (WTO) :
1) It seeks to make international trade free by establishing predictable and transparent ground rules.
2) It promotes capital flow from developed to developing countries.
3) It promotes a form for trade negotiations,
4) It works as a neutral agency for settlement of trade disputes.
Identify the correct statements from the above : Show Answer

Q66) Which of the following statements is not correct in relation to International Monetary Fund?
1) India is a founder member of the IMF.
2) IMF conducts regular review of India's economic status under Article IV.
3) India's quota in the IMF is more than 2 %
4) Finance Minster is ex-officio Governor of the IMF.
Show Answer

Q67) The new Economic Policy (1991) was launched in the background of the following economic indicators:
1) India's foreign exchange reserve had fallen to US$1 billion.
2) The fall of the Soviet Union had deprived India of almost a quarter of its export market.
3)There was negative growth in real GDP.
4) Indian rupee has to be devalued by 45%.
Show Answer

Q68) "Focus Product' and 'Focus Market' are two schemes introduced related to -
1) Industrial Diversification
2) Technology Up-gradation
3) Export Promotion
4) Control of Inflation
Choose the right option Show Answer

Q69) Which is true for existing economic and Industrial Policy of Indian Govt?
1) FERA was abolished
2) METP was abolished
3) Cash compensatory support for export was abolished
4) Industrial Licensing (except a few goods) was abolished Show Answer

Q70) Which of the following pairs are correctly matched ?
1) Increased in-- Monetary expansion
2) Low import growth rate in India-- Recession in indian industry
3) Euro issue -- Share held by Indian companies in European Countries
4) Portfolio investment -- Foreign institutional investors.
Show Answer

Q71) Which of the following would include Foreign Direct Investment in India?
1) Subsidiaries of foreign companies in India.
2) Majority foreign equity holding in India companies
3) Companies exclusive financed by foreign companies
4) Portfolio investment
Select the correct answer using the codes given below Show Answer

Q72) The SEZ Act, 2005 which came, into effect in February 2006 has certain objectives. In context, consider the following:
1) Development of infrastructure facilities.
2) Promotion of investment from foreign sources .
3) Promotion of export of services only.
Which of the above are the objectives of this Act?
Show Answer

Q73) Consider the following statements.
1) The G20 was established in 2008 in the wake of the global financial crisis led by the USA.
2) It brings together the major advanced and emerging economies to stabilize the global financial market.
3) India's stand on Mutual Assessment Process (MAP) for measuring imbalance between surplus and deficit economies in the Seoul Conference of G20 in the year 2010 was firmly endorsed by all nations
Which of the statements given above is/are correct? Show Answer

Q74) Which of the following is correct about 'Foreign direct investment' (FDI)?
1) Through FDI a company buys a company in the target country.
2) Through FDI a company expand operations of an existing business in the target country
3) FDI is an investment in the securities of another country such as stock and bonds.
4) FDI is an investment directly into production in a country by a company located in another country .
Show Answer

Q75) Foreign direct investment is done for many reasons which may include
1) taking advantage of cheaper wages in the country.
2) taking advantage of special investment privileges such as tax exemption offered by the country
3) as an incentives to gain tariff-free access to the markets of the country or the region ? Show Answer

Q76) International Monetary Fund(IMF) argues that developing economies hold a massive stockpile of foreign exchange. Which could be the consequences of such stockpiling ?
1) A trade imbalance or major difference in value of imports/exports is generated between the developing and emerging economies and the rich countries. Such an imbalance is not a healthy sign.
2) These imbalances have caused the current global economic crisis.
3) Such stocking is responsible not only for problems in trade balances but lead to money launching . Show Answer

Q77) Trade between India and China is in a state of "Payment imbalance', What does this mean in real terms?
1) China imports less from India but India import more from China.
2) China delays payments to exporters .
3) India wants payment in US Dollars but wants to pay in yuan Show Answer

Q78) Export to Euro from India unexpectedly declined again in last two/three months indicating________?
1) There is doubts about the strength of economic recovery of Euro zone.
2) Euro is not yet a credible and acceptable currency US $ is preferred for trans-border trades.
3) Euro zone countries do not wish to import from India Show Answer

Q79) After the latest global slowdown and financial crisis, a debate in going on, on"Dollar Hegemony". What does it really mean?
1) it is the international trade practice which US $ is used to express value of all traded goods and services.
2) it is the situation in which all the nations are forcefully required to evaluate their currencies against the US $. Hence, countries are forced to maintain dollars reserves to trade in the global market.
3) economists are trying to evolve a solution to come out of this dollar trap. Dollar trap hegemony prevents exporting nations from spending domestically the $ they have earned from trade. Show Answer

Q80) Foreign Direct Investment is coming to the country for various projects. why should government promote Foreign Direct Investment when it can provide funds from its own resources ?
1) FDI supplements domestic investment and will bridge the investment savings gap.
2) FDI bring in better and advanced technology not available domestically.
3) it generated new employment opportunities Show Answer

Q81) Which of the following are major functions of foreign exchange market ?
1) Transfer of purchasing power domestic market to foreign market.
2) Providing credit for financing foreign trade.
3) Power to purchase gold from abroad as most nations are on Gold Standard.
Show Answer

Q82) Which of the following is/are true about the Indo-Us Economic and financial partnership deal made in November 2009?
1) The objective of the deal is to strengthen bilateral engagements and understanding.
2) Work jointly on some financial and infrastructural related projects.
3) The deal was singed during the visit of the Foreign Ministers of both the countries to South Africa for Global Economic Summit 2009. Show Answer

Q83) Europe faces a Sovereign-debt crisis. which of the following statements is/are about the crisis?
1) In early 2010 Euro crisis developed in Greece, Spain and Portugal.
2) The crisis created a credit default swap between countries of European Union
3) SAARC countries have offered assistance to Portugal, Spain and Greece. Show Answer

Q84) Foreign Direct investment are preferred over Capital Inflow. In this context, Please consider the following :
1) FDI brings in latest technology.
2) FDI does not involve large outflow.
3) FDI improves working efficiency.
Which is/are most suitable reason/s for the given statement? Show Answer

Q85) Despite having large reserve of coal, why does India import millions of tonnes of coal ?
1) It is the policy of India to save its own coal reserves for future,and import it form other countries for the present use.
2) Most of the power plant in India are coal-based and they are not able to get sufficient supplies of coal from within the country.
3) Steel companies need large quantity of coking coal within has to be imported.
Which of the statements given above is/are correct ? Show Answer

Q86) Assertion : Indies's share in world trade has declined over the period 1950 to 1951 to 1990 to 1991.
Reason : Composition of India's export/imports has not changed over period 1950 to 1951 to 1990 to 1991.
Show Answer

Q87) Assertion : The EXIM policy is liberal, market-oriented, and favors global trade.
Reason : GATT as played a significant role in the liberalization of the economy.
Show Answer

Q88) Assertion : For the first time, India had no trade deficit in the year 2002 to 2003.
Reason : For the first time, India's export crossed wroth $50 billion in the year 2002 to 2003
Show Answer

Q89) Assertion : India's software export increased at an average growth rate of 50% since 1995 to 1996.
Reason : Indian software companies were cost effective and maintained international quality .
Show Answer

Q90) Assertion :Foreign investment may affect a country's export performance.
Reason : Inflow of foreign exchange may cause appreciation of local currency leading to a rise in the price of export commodities.
Show Answer

Q91) Assertion : Celling on foreign exchange for a cost of current account transaction heads was lowered in the year 2000.
Reason : There was a fall in foreign currency assets also. Show Answer

Q92) Which among the following statements is/are true with regards to WTO
membership?
1) All WTO members automatically receive the most favourable nation status.
2) Over 75% of WTO members are from developing countries and the membership allows them access to developed markets at lower tariff
Which of the statements given above is/are correct? Show Answer

Q93) Regarding the International Monetary Fund (IMF), which one of the following statements is correct? Show Answer

Q94) Which one of the following organisation is related with Doha Development Agenda ? Show Answer

Q95) Which of the following constitute capital accounts?
1) Foreign Loan
2) Foreign Direct Investment
3) Private Remittances
4) Portfolio Investment
Select the correct answer using the codes given below Show Answer

Q96) Consider the following statements about Goods and Services Tax (GST) Bill of India
1) GST consists of three component such as central GST, state GST and local GST.
2) Central GST and state GST will apply to all transacctions of the goods and services.
Which of the statements given above is/are correct ? Show Answer

Q97) Consider the following objectives of the Bretton-Woods System
1) To Maintain the exchange rate by tying its currency to the US dollar
2) To bridge temporary imbalances of payments
Which of the objective given above is/are correct ? Show Answer

Q98) Consider the following institutions
1) International Monetary Fund
2) International Bank for Reconstruction and Development
3) Asian Development Bank
Which of the institutions given above is/are established under Bretton Woods System ? Show Answer

Q99) Consider the following related to world Bank organisations, IBRD and IDA
1) India use IDA funds on social sector.
2) India use IBRD funds on infrastructure development
3) IBRD loans are cheaper than IDA loans.
Select the correct answer using the codes given below. Show Answer

Q100) Consider the following statements
1) General Agreement on Trade in Services is a treaty of the World Trade Organisation (WTO) that
entered into force in January 1995.
2) All members of the WTO are signatories to the General Agreement on Trade in Services.
Which of the statements given above is/are correct ? Show Answer

Q101) IMF was established to meet which of the following objectives ?
1) Promoting International Monetary Cooperation.
2) Expanding International Trade.
3) Lessening the disequilibrium in balance of trade.
4) Avoiding competitive exchange depreciations.
Which of the statements given above is/are correct ? Show Answer

Q102) Which one of the following statements is correct about the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS) of the World Trade Organisation (WTO)? Show Answer

Q103) Which one of the following percentages is the share of the India Export in the International
Export in the International Trade ? Show Answer

Q104) Consider the following statements
1) India's Trade Policy Review (TRP) is carried out every four years.
2) WTO has mechanism for regular review of the Trade Policies of member countries.
Which of the statements given above is/are correct ? Show Answer

Q105) Global Competitiveness Report is released by which of the following organisations ? Show Answer

Q106) Which one of the following international organisations offers political risk insurance guarantees to help
investors to protect foreign direct investments made in developing countries against political risk ? Show Answer

Q107) The G-8 countries included
1) France
2) Germany
3) Canada
4) Italy
5) Netherlands
6) UK
7) US
8) Russia
9) Japan
Select the correct answer using the codes given below
Show Answer

Q108) Consider the following functions of the Foreign Exchange Management Act (FEMA)
1) FEMA restricts activities such as payments made to any person outside India or receipts from them.
2) FEMA imposes restriction on people living in India who carry out transactions in foreign exchange, foreign security or who own or hold immovable property abroad.
3) FEMA regulates the exporters to furnish their export details to RBI.
Which of the statements given above is/are correct ? Show Answer

Q109) With reference to Indian Government guidelines consider the following statements
1) Indian Depository Receipt (IDRs) will be issued to Indian resident in the same way as domestic shares are issued.
2) IDR Holders can convert IDRs into underlying equity shares only with the prior approval of the SBI.
Which of the statements given above is/are correct ? Show Answer

Q110) In October 2013, which of the following countries has announced it would become the first member of the Euro Zone, to exit an international bail-out programme? Show Answer

Q111) Currently, India is not a member state to which one of the following organizations ?
1. SAARC
2. ASEAN
3. APEC
4. WTO
Choose the correct answer from the codes given below: Show Answer

Q112) Which of the following is the venue for the 9th World Trade Organisation Ministerial conference which will be held in December 2013? Show Answer

Q113) As per the latest report by World Bank, which country has become the largest recipient of foreign remittances in 2013? Show Answer

Q114) Which of the following are wrong?
1. Import duty on Gold is hiked from 10% to 15%
2. Import duty on silver is hiked from 10% to 15%.
3. India is a longest importer of gold in the world.
Codes: Show Answer

Q115) Consider the following statements
1. According to the World Ultra Wealth report 2013, India has the highest number of female millionaires in the world .
2. India extended $144 million to Liberia to fund a power transmission and distribution project.
3. Indian-American Puneet Talwar has been appointed to a top diplomatic position as the Assistant Secretary of State for Foreign Affairs.
Choose the correct code Show Answer

Q116) Recently (September, 2013), in which of the following cities China launched its first " Free Trade Zone"? Show Answer

Q117) Recently (September,2013), RBI has decided to allow all types of companies to avail of trade credit not exceeding __________ million up to a maximum period of five years for import of capital goods.
Fill the blank with correct option ? Show Answer

Q118) Which one among the following agencies is know as 'soft credit window' of the World Bank?
Show Answer

Q119) Consider the following Statements?
1. 'India is a member of Trans Atlantic Trade and Investment Partnership (TTIP) that accounts for more than 30 percent of world trade in goods and services.'
2. 'G-33 is the group of worlds most developed nations that co-ordinate on trade and economic issues.'
Which of the above statement/ statements is/are true? Show Answer

Q120) Consider the following statements
1. ' According to recent World Bank forecasts, India and China are the two top destinations for Global remittances that promote development in the economy and are the biggest source of foreign finance for developing economies.'
2. 'Etihad-the Abu Dhabi based Airways has acquired 24 percent equity in Jet-Airways and this is the instance of biggest ever foreign investment in the domestic aviation sector till date.'
Which of the above statements/ statements is/are false? Show Answer

Q121) The term ‘IndARC’ sometimes seen in the news, is the name of? Show Answer

Q122) Assertion (A): with economic development, the contribution of agricultural sector in GDP tends to decline.
Reason (R) : Economic development is usually accompanied by improvement in productivity & growth of agricultural sector.
Select the answer from the codes given below: Show Answer

Q123) By entering into a Currency Swap Agreement
1. Central Banks can exchange domestic currency with hard currency during their difficult Balance of Payments position.
2. Companies can hedge their future cash flow in foreign currency.
3. Countries can trade with their trading partners in terms of their domestic currency.
Select the correct answer from the codes given below: Show Answer

Q124) Difference between Current account deficit and Trade deficit is:
1. Current Account is the sum of Balance of trade, Factor Income and Net transfer payments. Balance of Trade is the difference between value of import and export.
2. Current account deficit Occurs when a country’s total imports of goods, services and transfers is greater than the country’s total export of goods, services and transfers.
3. When we are importing more than our exports, we have Trade Deficit.
Which of the statement(s) given above is/ are correct? Show Answer

Q125) With reference to Balance of Payments, which of the following constitutes / constitute the Current Account?
1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Rights
Select the correct answer using the code given below. Show Answer

Q126) What is ‘Greenhouse Gas Protocol’? Show Answer

Q127) With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017.
2. The Agreement aims to limit the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2 °C or even 1.5 °C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below. Show Answer

Q128) Consider the following statements:
1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the 'Club of Rome'.
2. The Sustainable Development Goals have to be achieved by 2030.
Which of the statements given above is/are correct? Show Answer

Q129) Consider the following objectives about the Monopolistic and Restrictive Trade Practices Act, 1969
1. To prohibit monopolistic and restrictive trade practices (except by government)
2. To prevent concentration of economic power in few hands
3. To control the Monopolies
4. To protect consumer Interest
Select the correct answer using the code given below. Show Answer

Q130) What is the difference between Green Field Investment and Brown Field Investment?
1. Green Field investment is a type of FDI and Brown Field Investment is a type of FII.
2. Green Field Investment creates more jobs as compared to Brown Field Investment.
3. The statements (a) and (b) given above are correct in this context.
4. Neither (a) nor (b) given above are correct in this context. the correct statement(s) is/are- Show Answer

Q131) Which of the following organization is responsible for developing, implementing and promoting adherence to internationally recognized standards for securities regulation? Show Answer

Q132) Consider the following terms/instruments that is traded in share market
1. Forwards
2. Futures
3. Options
4. Swaps
The above-mentioned terms/instruments are called - Show Answer

Q133) Which of the following statements is/are correct with reference to FEMA in India?
1. The Foreign Exchange Regulation Act (FERA) was replaced by Foreign Exchange Management Act in the year 2001
2. FERA was given as unset clause of one year till 31st may, 2002 to enable Enforcement Directorate to complete the investigation of pending issues
3. Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
4. As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rules
Select the answer from the codes given below: Show Answer

Q134) The foreign exchange reserves of the country include:
1. Foreign exchange assets of RBI
2. Gold stock of RBI
3. SDR holdings of the Government
The correct statement(s) is/are- Show Answer

Q135) Difference between Current account deficit and Trade deficit is:
1. Current Account is the sum of Balance of trade, Factor Income and Net transfer payments. Balance of Trade is the difference between value of import and export.
2. Current account deficit Occurs when a country’s total imports of goods, services and transfers is greater than the country’s total export of goods, services and transfers.
When we are importing more than our exports, we have Trade Deficit.
Which of the statement(s) given above is/ are correct? Show Answer

Q136) By entering into a Currency Swap Agreement
1. Central Banks can exchange domestic currency with hard currency during their difficult Balance of Payments position.
2. Companies can hedge their future cash flow in foreign currency.
3. Countries can trade with their trading partners in terms of their domestic currency.
Select the correct answer from the codes given below:
Show Answer

Q137) India has played an important role in the 21st Conference of Parties (COP 21) under the UNFCCC and adoption of the Paris Agreement in December 2015.What is not true about it? Show Answer

Q138) Consider the following salient measures taken to boost the foreign direct investment in the country:
1. approval required for eligible investment in Limited Liability Partnerships.
2. Special treatment applicable for investment by non-resident Indians on non-repatriation basis through companies, partnerships, trusts etc.
3. approval required for foreign investment by way of share swap;
4. new sectors opened up for foreign investment, including plantations, duty free shops and ownership in real estate for purposes of leasing.
5. Foreign shareholding limits increased in many sector including broadcasting and airline services.
6. Investment in certain sectors including defence, broadcasting and airline services, now under automatic route.
7. Full fungibility for portfolio investment in private banking sector.
Select the answer using the codex given below: Show Answer

Q139) Assertion-India’s external sector outcome continues to be strong and sustainable because of strong macroeconomic fundamentals and low commodity prices.
Reason-while export slowdown may continue for a while before picking up in the next fiscal, continuance of low global commodity prices augurs well for sustaining low trade and current account deficits.
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Q140) Which of the following statements is/are correct with reference to FEMA in India?
1. The Foreign Exchange Regulation Act (FERA) was replaced by Foreign Exchange Management Act in the year 2001
2. FERA was given as unset clause of one year till 31st may, 2002 to enable Enforcement Directorate to complete the investigation of pending issues
3. Under FEMA, violation of foreign exchange rules has ceased to be a criminal offence
4. As per the new dispensation, Enforcement Directorate can arrest and prosecute the people for the violation of foreign exchange rules
Select the answer from the codes given below: Show Answer

Q141) Assertion-India’s contribution in the global economy has become much more valuable today as China is rebalancing.
Reason-the recent growth revival in India is predominantly consumption driven.
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Q142) More open FDI policy has been adopted with FDI allowed for
1. Agriculture - 100%
2. Asset Reconstruction Companies - 100%
3. Civil aviation - 49%
4. Courier service - 100%
5. Credit rating / Information - 60%
6. FDI Limits in Defence - 26%
7. Education - 100%
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Q143) Assertion- Since the mid- 2000s India’s Free Trade Agreements have doubled to about 42 today.
Reason- Increased trade has been more on the import than export side, because India maintains relatively high tariffs and hence had larger tariff reductions than its FTA partners.
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Q144) Consider the following statemets with regard to export scenario in India-
1. Overall exports declined by about 18% in the first three quarters.
2. In the last two years Indian services exports have been more affected than Indian manufacturing exports and also world service exports.
Select the correct answer using the codes given
below: Show Answer

Q145) Assertion-Continuance of low commodity prices globally augurs well for sustaining low trade and current account deficit.
Reason-Exports slow down may continue for a while before picking up in the next fiscal,
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Q146) Qualified Foreign Investor (QFI) is sub-category of Show Answer

Q147) Which of the following statements is/are true-
1. The trade increases have been much greater with the ASEAN than other FTAs and they have been greater in certain industries, such as metals on the import side.
2. On the export side, FTAs have led to increased dynamism in apparels, especially in ASEAN markets.
3. India’s increased trade with FTA countries is due to diversion of imports from more efficient non- FTA countries.
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Q148) From the following statements choose the one(s) which is / are the pillar(s) of the Basel Norms:
1. Capital Adequacy
2. Supervisory Review
3. Market Discipline
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Q149) Assertion-despite volatility in global financial markets, the Indian equity market has been relatively resiliant during this period compared to the other major emerging market economies.
Reason- Banking sector gross credit deployment has been fast during the financial year.
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Q150) India’s external debt consists of-
1. Long term external debt
2. Multilateral loans
3. Commercial borrowings
4. Bilateral loans
5. Trade credit
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Q151) In term of balance of payment of India consider the following -
1. Export and Import of Goods (Merchandise Transactions or Visible Trade):
2. Unilateral or Unrequited Transfers to and from abroad (One sided Transactions):
3. Income receipts and payments to and from abroad:
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Q152) Which of the following statements is/are true?
1. An account that keeps a tab on the dollar expenses and dollar inflows for a period (normally an accounting year) is commonly known as the ‘current account’.
2. A negative balance amounts to current account deficit (CAD), indicating broadly that the country’s imports exceed exports.
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Q153) India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports
Reason-Asia's first EPZ was set up in Kandla in 1965.
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Q154) Consider the following with regard to the objectives of the the SEZ Act, 2005 are:
1. generation of additional economic activity
2. promotion of exports of goods and services
3. promotion of investment from domestic and foreign sources
4. creation of employment opportunities
5. development of infrastructure facilities
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Q155) What is the difference between Green Field Investment and Brown Field Investment?
1. Green Field investment is a type of FDI and Brown Field Investment is a type of FII.
2. Green Field Investment creates more jobs as compared to Brown Field Investment.
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Q156) Which of the following organization is responsible for developing, implementing and promoting adherence to internationally recognized standards for securities regulation? Show Answer

Q157) A method for determining whether someone qualifies for a financial-assistance program called Show Answer

Q158) Consider the following about patents -
1. Patents are territorial rights.
2. the exclusive rights are only applicable in the country or region in which a patent has been filed and granted
3. To get a patent, technical information about the invention must be disclosed to the public in a patent application.
4. The protection is granted for a limited period, generally 20 years from the filing date of the application.
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