UPSC 2021 › Indian Economy › External Sector & Balance Of Payments

2 questions · 2021 · answers as per the UPSC key

Take test Free Study this topic: External Sector and Trade
All years of External Sector & Balance Of Payments · Full UPSC 2021 paper
UPSC 2021 · Q7 · Indian Economy › External Sector & Balance Of Payments · Save

Consider the following :

  1. Foreign currency convertible bonds
  2. Foreign institutional investment with certain conditions
  3. Global depository receipts
  4. Non-resident external deposits

Which of the above can be included in Foreign Direct Investments?

(a) 1, 2 and 3
(b) 3 only
(c) 2 and 4
(d) 1 and 4
Show answer
Answer: (a) 1, 2 and 3
UPSC 2021 · Q8 · Indian Economy › External Sector & Balance Of Payments · Save

Consider the following statements : The effect of devaluation of a currency is that it necessarily

  1. improves the competitiveness of the domestic exports in the foreign markets
  2. increases the foreign value of domestic currency
  3. improves the trade balance

Which of the above statements is/are correct?

(a) 1 only
(b) 1 and 2
(c) 3 only
(d) 2 and 3
Show answer
Answer: (a) 1 only