1. Import substitution implies ? [UPSC CAPF 2011]

(a) importing new items in place of old items of import
(b) gradual reduction of goods to save foreign exchange
(c) increasing domestic supply of goods by imposing import restrictions
(d) replacing import items by domestic production of such items

2. Which one among the following is the correct descending sequence of India’s import of commodities in terms of value? [UPSC CAPF 2012]

(a) Capital Goods-Electronic Goods-Food Products -Fertilizers
(b) Fertilizers–Food Products -Electronic Goods -Chemicals
(c) Capital Goods-Electronic Goods-Food Products -Chemicals
(d) Electronic Goods-Capital Goods-Fertilizers -Food Products

3. Which of the following statements is correct with respect to the convertibility of Indian rupee? [UPSC CAPF 2013]

(a) It is convertible on capital account
(b) It is convertible on current account
(c) It is convertible both on current and capital account
(d) None of the above

4. As per the latest trade agreement in Bali Ministerial Conference of WTO, India and other developing and under developed countries can launch food security programmes. [UPSC CAPF 2014]

(a) forever without any penalty under WTO rules
(b) till an alternative mechanism is developed
(c) for four calendar years
(d) only if subsidy component under such programs is less than 10%

5. Which of the statements given below is/are correct? [UPSC CAPF 2014]

1. In India, the provisions of General Anti Avoidance Rule (GAAR) will be implemented with effect from 1 April, 2015.
2. The provision of GAAR were aimed at checking tax avoidance by overseas investors.

Select the correct answer using the codes given below.

Codes
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2

6. The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to [UPSC CSE 2017]

(a) Developing solar power production in our country
(b) Granting licences to foreign T.V. channels in our country
(c) Exporting our food products to other countries
(d) Permitting foreign educational institutions to set up their campuses in our country

7. Which of the following best describes the term ‘import cover’, sometimes seen in the news? [UPSC CSE 2016]

(a) It is the ratio of value of imports to the Gross Domestic Product of a country
(b) It is the total value of imports of a country in a year
(c) It is the ratio between the value of exports and that of imports between two countries
(d) It is the number of months of imports that could be paid for by a country’s international reserves

8. The problem of international liquidity is related to the non-availability of [UPSC CSE 2015]

(a) goods and services
(b) gold and silver
(c) dollars and other hard currencies
(d) exportable surplus

9. Convertibility of rupee implies [UPSC CSE 2015]

(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India

10. With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? [UPSC CSE 2014]

1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Rights

Select the correct answer using the code given below.

(a) 1 only
(b) 2 and 3
(c) 1 and 3
(d) 1, 2 and 4

11. Which one of the following groups of items is included in India’s foreign-exchange reserves? [UPSC CSE 2013]

(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(b) Foreign-currency assets, gold holdings of the RBI and SDRs
(c) Foreign-currency assets, loans from the World Bank and SDRs
(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank

12. Which of the following constitute Capital Account? [UPSC CSE 2013]

1. Foreign Loans
2. Foreign Direct Investment
3. Private Remittances
4. Portfolio Investment

Select the correct answer using the codes given below.

(a) 1, 2 and 3
(b) 1, 2 and 4
(c) 2, 3 and 4
(d) 1, 3 and 4

13. The balance of payments of a country is a systematic record of [UPSC CSE 2013]

(a) all import and transactions of a during a given period normally a year
(b) goods exported from a country during a year
(c) economic transaction between the government of one country to another
(d) capital movements from one country to another

14. Which of the following would include Foreign Direct Investment in India? [UPSC CSE 2012]

1. Subsidiaries of companies in India
2. Majority foreign equity holding in Indian companies
3. Companies exclusively financed by foreign companies
4. Portfolio investment

Select the correct answer using the codes given below :

(a) 1, 2, 3 and 4
(b) 2 and 4 only
(c) 1 and 3 only
(d) 1, 2 and 3 only

15. Regarding international Monetary Fund, which one of the following statements is correct? [UPSC CSE 2011]

(a) It can grant loans to any country
(b) It can grant loans to only developed countries
(c) It grants loans to only member countries
(d) It can grant loans to the central bank of a country

16. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two? [UPSC CSE 2011]

(a) FII helps bring better management skills and technology, while FDI only brings in capital
(b) FII helps in increasing capital availability in general, while FDI only targets specific sectors
(c) FDI flows only into the secondary market, while FII targets primary market
(d) FII is considered to be more stable than FDI

17. Consider the following actions which the Government can take: [UPSC CSE 2011]

1. Devaluing the domestic currency.
2. Reduction in the export subsidy.
3. Adopting suitable policies which attract greater FDI and more funds from FIIs.

Which of the above action/actions can help in reducing the current account deficit?

(a) 1 and 2
(b) 2 and 3
(c) 3 only
(d) 1 and 3

18. In terms of economy, the visit by foreign nationals to witness the XIX Common Wealth Games in India amounted to [UPSC CSE 2011]

(a) Export
(b) Import
(c) Production
(d) Consumption