Which of the following factors can lead to the 'Appreciation' of the Indian Rupee?

1. Increase in foreign tourist arrivals in India.
2. High demand for Indian software services globally.
3. Rapid exit of foreign portfolio investors from Indian stock markets.
4. Large-scale purchase of dollars by the RBI.

How many of the above statements are correct?

With reference to 'NEER' and 'REER', consider the following:

1. NEER is a weighted average of bilateral nominal exchange rates.
2. REER is NEER adjusted for inflation differentials.
3. An increase in REER indicates an improvement in trade competitiveness.

How many of the above statements are correct?

Consider the following statements regarding 'Trade Balance':

1. A trade surplus occurs when exports are less than imports.
2. It accounts for both merchandise (goods) and services.
3. India traditionally runs a trade deficit in merchandise.

How many of the above statements are correct?

What is 'Round Tripping' in the context of FDI?

Consider the following statements about 'Foreign Exchange Management Act' (FEMA), 1999:

1. It replaced the Foreign Exchange Regulation Act (FERA).
2. Its objective is to facilitate external trade and payments and promote orderly development of the forex market.
3. Violations under FEMA are treated as criminal offenses.

How many of the above statements are correct?

With reference to 'Dutch Disease', which of the following is correct?

Consider the following statements regarding 'Remittances' in India:

1. India is often one of the top recipients of global remittances.
2. Remittances are recorded as a debit item in the Current Account.
3. They provide a stable source of foreign exchange compared to FPI.

How many of the above statements are correct?

Which of the following is the largest component of India's external debt?

Consider the following statements about 'Most Favored Nation' (MFN) status:

1. It requires a country to provide any concessions or privileges granted to one trading partner to all other WTO members.
2. It is a principle of non-discrimination in international trade.
3. Regional Trade Agreements (RTAs) are an exception to the MFN principle.

How many of the above statements are correct?

With reference to 'Trade Facilitation Agreement' (TFA) of WTO, consider the following:

1. It aims to expedite the movement, release, and clearance of goods across borders.
2. India is a signatory to this agreement.
3. It focuses only on agricultural trade between developed nations.

How many of the above statements are correct?

Which of the following items are included in the 'Invisibles' section of the Current Account?

1. Software services
2. Private remittances
3. Income from investments (Interest, Profits)
4. Royalties and license fees

How many of the above statements are correct?

Consider the following statements regarding 'External Commercial Borrowings' (ECB):

1. These are loans from non-resident lenders to Indian entities.
2. They are part of the Capital Account in the Balance of Payments.
3. They are primarily used for consumption purposes by the government.

How many of the above statements are correct?

The 'Effective Exchange Rate' (EER) of a country is often used to:

With reference to 'Convertibility of Currency', consider the following:

1. Current account convertibility allows free conversion of domestic currency into foreign currency for trade in goods and services.
2. India has full capital account convertibility.
3. The Tarapore Committee was associated with capital account convertibility.

How many of the above statements are correct?

Consider the following statements about 'Special Drawing Rights' (SDRs):

1. It is a currency created by the International Monetary Fund (IMF).
2. It serves as a supplementary international reserve asset.
3. Its value is based on a basket of five major currencies.

How many of the above statements are correct?

Which of the following best describes the 'Current Account Deficit' (CAD)?

With reference to Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI), consider the following:

1. FDI is generally considered more volatile than FPI.
2. FDI involves a long-term interest in the management of an enterprise.
3. FPI is often referred to as "hot money" due to its quick entry and exit from markets.

How many of the above statements are correct?