UPSC 1996 › Indian Economy › External Sector & Balance Of Payments
3 questions · 1996 · answers as per the UPSC key
UPSC 1996 · Q34 · Indian Economy › External Sector & Balance Of Payments · Save
One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because
(a) convertibility of the rupee will stabilize its exchange value against major currencies of the world
(b) it will attract more foreign capital inflow in India
(c) it will help promote exports
(d) it will help India secure loans from the world financial markets at attractive terms
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Answer: (c) it will help promote exports
UPSC 1996 · Q51 · Indian Economy › External Sector & Balance Of Payments · Save
Hawala transactions relate to payments
(a) received in rupees against overseas currencies and vice versa without going through the official channels
(b) received for sale/transfer of shares without going through the established stock exchanges
(c) received as commission for services rendered to overseas investors/buyers/sellers in assisting them to get over the red tape and/or in getting preferential treatment
(d) made to political parties or to individuals for meeting election expenses
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Answer: (a) received in rupees against overseas currencies and vice versa without going through the official channels
UPSC 1996 · Q140 · Indian Economy › External Sector & Balance Of Payments · Save
The changing composition of the export trade is indicative of structural transformation of Indian economy in favour of modernisation. The best indicator of the trend is the
(a) relative share of petroleum products in exports
(b) decline in the share of agricultural products in exports
(c) constant share of ores and minerals in exports
(d) increase in the share of manufactured products in exports
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Answer: (d) increase in the share of manufactured products in exports