Q252. Consider the following statements: The effect of the devaluation of a currency is that it necessarily: 1. Improves the competitiveness of domestic exports in the foreign markets. 2. Increases the foreign value of the domestic currency 3. Improves the trade balance Which of the above statements is/are correct?

Consider the following actions which the government can take: 1. Devaluing the domestic currency. 2. Reduction in the export subsidy. 3. Adopting suitable polic

With reference to the Indian economy, consider the following statements: 1. An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of

With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, the Reserve Bank of India (RBI) is likely to buy gover

Consider the following statements: Full convertibility of the rupee may mean: 1. Its free float with the international currencies 2. Its direct exchange with an

Assertion (A) : Devaluation of a currency may promote export. Reason (R): Price of the country’s products in the international market may fall due to devaluatio

Consider the following statements: 1. Tight monetary policy of the US Federal Reserve could lead to capital flight. 2. Capital flight may increase the interest

Consider the following statements: The Indian rupee is fully convertible: 1. in respect of Current Account of Balance of payment 2. in respect of Capital Accoun

Consider the following statements: Other things remaining unchanged, market demand for a good might increase if 1. price of its substitute increases 2. price of

Consider the following statements: The price of any currency in international market is decided by the 1. World Bank 2. Demand for goods/services provided by th

Consider the following statements : The price of any currency in international market is decided by the: 1. World Bank 2. Demand for goods/services provided by

Consider the following actions by the Government: 1. Cutting the tax rates 2. Increasing the government spending 3. Abolishing the subsidies in the context of e

Which of the following measures would result in an increase in the money supply in the economy? 1. Purchase of government securities from the public by the Cent

Which one of the following statements is an appropriate description of deflation?

A rise in the general level of prices may be caused by: 1. An increase in the money supply 2. A decrease in the aggregate level of output 3. An increase in the

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 earni

What is/are the most likely advantages of implementing ‘Goods and Services Tax (GST)’? 1. It will replace multiple taxes collected by multiple authorities and w

Which of the following has/have occurred in India after its liberalisation of economic policies in 1991? 1. The share of agriculture in GDP increased enormously

Consider the following statements: 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is/are corre

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports by foreig

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. Not de

Assertion (A) : The rate of growth of India’s exports has shown an appreciable increase after 1991. Reason (R) : The Govt. of India has resorted to devaluation.

With reference to the international trade of India at present, which of the following statements is/are correct? 1. India’s merchandise exports are less than it

“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?

Consider the following: 1. Foreign currency convertible bonds 2. Foreign institutional investment with certain conditions 3. Global depository receipt

With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements: 1. AIIB has more than 80 member nations. 2. India is

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 i

Consider the following statements: 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods

India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to:

With reference to the ‘National Intellectual Property Rights Policy’, consider the following statements: 1. It reiterates India’s commitment to the Do

Consider the following statements: 1. New Development Bank has been set up by APEC. 2. The headquarters of New Development Bank is in Shanghai. Which