UPSC 2002 › Indian Economy › External Sector & Balance Of Payments
4 questions · 2002 · answers as per the UPSC key
UPSC 2002 · Q36 · Indian Economy › External Sector & Balance Of Payments · Save
India's external debt increased from US $98,158 million as at the end of March 2000 to US $100,225 million as at the end of March 2001 due to increase in
(a) multilateral and bilateral debt
(b) rupee debt
(c) commercial borrowings and NRI deposits
(d) borrowing from International Monetary Fund
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Answer: (a) multilateral and bilateral debt
UPSC 2002 · Q70 · Indian Economy › External Sector & Balance Of Payments · Save
Global capital flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and the Latin American experience, which type of inflow is considered safest for the host country?
(a) Commercial loans
(b) Foreign Direct Investment
(c) Foreign Portfolio Investment
(d) External Commercial Borrowings
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Answer: (b) Foreign Direct Investment
UPSC 2002 · Q133 · Indian Economy › External Sector & Balance Of Payments · Save
A country is said to be in debt trap if
(a) it has to abide by the conditionalities imposed by the International Monetary Fund
(b) it has to borrow to make interest payments on outstanding loans
(c) it has been refused loans or aid by creditors abroad
(d) the World Bank charges a very high rate of interest on outstanding as well as new loans
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Answer: (b) it has to borrow to make interest payments on outstanding loans
UPSC 2002 · Q137 · Indian Economy › External Sector & Balance Of Payments · Save
Consider the following statements: Full convertibility of the rupee may mean
- Its free float with other international currencies.
- Its direct exchange with any other international currency at any prescribed place inside and outside the country.
- It acts just like any other international currency.
Which of these statements are correct?
(a) 1 and 2
(b) 1 and 3
(c) 2 and 3
(d) 1, 2 and 3
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Answer: (d) 1, 2 and 3