50 questions. Choose an option and see at once whether it was right, with the correct answer and a worked solution. No timer, and nothing to submit.
0 of 50 answered
0 correct0 wrong
Answers here are not saved.Sign in to track your progress
Consider the following statements about the balance of payments (BoP):
1. The BoP records a country's transactions with the rest of the world over a period, usually a year.
2. The balance of trade is the difference between exports and imports of both goods and services.
3. External borrowing by a country is recorded in the capital account of the BoP.
Which of the statements given above is/are correct?
Match List-I with List-II:
| List-I (Term) | List-II (Meaning) |
|---|---|
| A. Depreciation | 1. Government raises the value of the currency under a fixed rate |
| B. Appreciation | 2. Rupee loses value against foreign currency under a flexible rate |
| C. Devaluation | 3. Government lowers the value of the currency under a fixed rate |
| D. Revaluation | 4. Rupee gains value against foreign currency under a flexible rate |
Select the correct answer using the codes given below.
Arrange the following events in chronological order:
1. World Trade Organisation is established with headquarters in Geneva
2. India takes loans from the World Bank and IMF on conditions of opening its economy
3. General Agreement on Tariffs and Trade (GATT) comes into being
4. India faces a balance of payments crisis with very low foreign exchange
Select the correct chronological order.
With reference to the LPG reforms of 1991, consider the following statements:
1. Liberalisation meant removing restrictions placed on the economy.
2. Privatisation meant reducing government ownership, for example through disinvestment of PSU shares.
Which of the statements given above is/are NOT correct?
Consider the following statements about international economic institutions:
1. The IMF and the World Bank are both headquartered in Washington DC.
2. The International Bank for Reconstruction and Development (IBRD) is the main arm of the World Bank.
3. The headquarters of the WTO is in Washington DC.
Which of the statements given above is/are correct?
Consider the following statements about exchange rate systems:
1. Under a flexible (floating) system, the exchange rate is set by demand and supply.
2. Managed floating lies between the flexible and fixed systems.
3. Under a fixed system, the exchange rate is set by market forces.
Which of the statements given above is/are correct?
Consider the following statements:
1. Outsourcing means a company hires regular services from outside, often from other countries.
2. Globalisation means integrating India with the world economy.
3. Under globalisation, India mainly became a country that sends its service work to other countries rather than receiving it.
Which of the statements given above is/are correct?
Trade in services and transfer payments, grouped among the 'invisibles', are recorded in which part of the balance of payments?
Match List-I with List-II:
| List-I (Item) | List-II (BoP term) |
|---|---|
| A. Trade in services | 1. Capital account |
| B. Exports of goods minus imports of goods | 2. Trade deficit |
| C. Foreign direct investment | 3. Invisibles |
| D. Imports exceeding exports | 4. Balance of trade |
Select the correct answer using the codes given below.
Which one of the following is recorded in the capital account of the Balance of Payments?
Prepare for CAT 2027 with expert-led online classes, comprehensive Quantitative Aptitude, VARC and DILR lessons, topic-wise practice questions, sectional tests, and full-length mock exams to boost your CAT percentile.
Recorded video lessons and topic-wise quizzes for CAT, XAT, SNAP and other MBA entrance exams
CAT, IPMAT, CUET, Banking, SSC & other competitive exams — master high-frequency vocabulary with exam-focused practice.
