UPSC 2006 › Indian Economy › External Sector & Balance Of Payments

2 questions · 2006 · answers as per the UPSC key

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UPSC 2006 · Q16 · Indian Economy › External Sector & Balance Of Payments · Save

Assertion (A): ‘Balance of Payments’ represents a better picture of a country’s economic transactions with the rest of the world than the ‘Balance of Trade’.

Reason (R): ‘Balance of Payments’ takes into account the exchanges of both visible and invisible items whereas ‘Balance of Trade’ does not.

(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not a correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
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Answer: (a) Both A and R are true and R is the correct explanation of A
UPSC 2006 · Q42 · Indian Economy › External Sector & Balance Of Payments · Save

Consider the following statements:

  1. In India, during the financial year 2004-2005 an increase of below 10 % over the value of exports (in rupee terms) in the financial year 2003-2004 was reported.
  2. According to the WTO, India’s share in the world merchandise exports is 2 % in the year 2005.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
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Answer: (d) Neither 1 nor 2