UPSC 2019 › Indian Economy › External Sector & Balance Of Payments

3 questions · 2019 · answers as per the UPSC key

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UPSC 2019 · Q63 · Indian Economy › External Sector & Balance Of Payments · Save

Consider the following statements :

  1. Most of India’s external debt is owed by governmental entities.
  2. All of India’s external debt is denominated in US dollars.

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
UPSC 2019 · Q65 · Indian Economy › External Sector & Balance Of Payments · Save

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?

  1. The foreign currency earnings of India’s IT sector
  2. Increasing the government expenditure
  3. Remittances from Indians abroad

Select the correct answer using the code given below.

(a) 1 only
(b) 1 and 3 only
(c) 2 only
(d) 1, 2 and 3
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Answer: (b) 1 and 3 only
UPSC 2019 · Q86 · Indian Economy › External Sector & Balance Of Payments · Save

Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?

(a) Curbing imports of non-essential goods and promoting exports
(b) Encouraging Indian borrowers to issue rupee denominated Masala Bonds
(c) Easing conditions relating to external commercial borrowing
(d) Following an expansionary monetary policy
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Answer: (d) Following an expansionary monetary policy