MPSC Rajyaseva Prelims

External Sector and Trade question bank (Indian Economy)

Practice 23 free MPSC Rajyaseva Prelims Indian Economy - External Sector and Trade questions with answers and step-by-step solutions.

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Q1.

Which of the following transactions is recorded on the credit side of India's Current Account in the Balance of Payments?

Topic: Balance of Payments | Source: AI Generated (MPSC Rajyaseva Prelims) | Status: pending review

(A)

Import of crude oil from West Asia

(B)

Remittances sent by Indians working abroad to their families in India

(C)

Purchase of shares in a foreign company by an Indian firm

(D)

External commercial borrowings taken by an Indian PSU

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Q2.

What does a 'Balance of Payments (BoP) Deficit' generally imply for a country?

Topic: Balance of Payments | Source: AI Generated (MPSC Rajyaseva Prelims) | Status: pending review

(A)

The country is exporting more goods than it imports.

(B)

The country's total payments to foreign countries exceed its total receipts from them, requiring depletion of forex reserves or borrowing.

(C)

The government budget is running at a fiscal deficit.

(D)

Foreign exchange reserves of the central bank are increasing rapidly.

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