Current and Capital Account — MCQ Practice
Interactive MCQ Practice
Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.
Which of the following transactions would be recorded under the 'invisible trade' component of India's Current Account? 1. Import of crude oil 2. Export of software services 3. Foreign Direct Investment (FDI) into an Indian manufacturing unit 4. Remittances sent by NRIs to their families in India
Consider the following statements regarding India's Capital Account: 1. Foreign Direct Investment (FDI) is generally considered more volatile than Foreign Portfolio Investment (FPI). 2. External Commercial Borrowings (ECB) are regulated by the Reserve Bank of India (RBI) under FEMA. 3. India has full capital account convertibility. Which of the statements given above is/are correct?
A persistent and large Current Account Deficit (CAD) in India is most likely to lead to which of the following? 1. Appreciation of the Indian Rupee 2. Increase in foreign exchange reserves 3. Increased reliance on capital inflows to finance the deficit 4. Reduced external debt
Which of the following committees is associated with recommendations for Capital Account Convertibility in India?
Consider the following statements regarding the Reserve Bank of India's (RBI) role in managing India's external sector: 1. The RBI is responsible for formulating the Foreign Trade Policy of India. 2. The RBI manages India's foreign exchange reserves. 3. The RBI regulates External Commercial Borrowings (ECBs). Which of the statements given above is/are correct?