External Sector · Economy · UPSC Civil Service

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MCQ (Single Correct Answer)

1

With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements :

1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.

2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.

Which of the statements given above is/are correct ?

UPSC Civil Service Prelims Paper I 2024 (General Studies)
2

Consider the following statements:

Statement-I:
Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.

Statement-II:
Venezuela has the world’s largest oil reserves.

Which one of the following is correct in respect of the above statements?

UPSC Civil Service Prelims Paper I 2024 (General Studies)
3

Consider the following statements:

Statement-I: India accounts for 3.2% of global export of goods.

Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.

Which one of the following is correct in respect of the above statements?

UPSC Civil Service Prelims Paper I 2023 (General Studies)
4

With reference to the Indian economy, consider the following statements:

1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.

2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.

3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.

Which of the above statements are correct ?

UPSC Civil Service Prelims Paper I 2022 (General Studies)
5
Which one of the following situations best reflects "Indirect Transfers" often talked about in media recently with reference to India ?
UPSC Civil Service Prelims Paper I 2022 (General Studies)
6

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. increase the foreign value of domestic currency

3. improves the trade balance

Which of the above statements is/are correct?

UPSC Civil Service Prelims Paper I 2021 (General Studies)
7

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?

UPSC Civil Service Prelims Paper I 2021 (General Studies)
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