Consider the following statements regarding Taxation and Ease of Living as per the Budget:

1. The new Income Tax Act, 2025, is scheduled to come into effect from April 2026.
2. The Tax Collected at Source (TCS) rate on overseas tour program packages has been significantly increased to curb capital flight.
3. Interest awarded by the Motor Accident Claims Tribunal to a natural person is proposed to be exempt from Income Tax.

How many of the above statements are correct?

With reference to the Balance of Payments (BoP), consider the following statements:

1. The Capital Account includes transactions that change the stock of assets or liabilities of a country.
2. The Current Account records the export and import of goods only.
3. Unilateral transfers like gifts and remittances are recorded in the Capital Account.

How many of the above statements are correct?

Which of the following components are part of India's Foreign Exchange Reserves?

1. Foreign Currency Assets (FCA)
2. Gold holdings of the RBI
3. Special Drawing Rights (SDRs)
4. Reserve Tranche Position (RTP) in the IMF

How many of the above statements are correct?

Consider the following statements regarding 'Devaluation' of a currency:

1. It is a deliberate downward adjustment of the value of a country's currency relative to another currency.
2. It generally makes a country's exports more expensive for foreigners.
3. It helps in improving the trade balance by discouraging imports.

How many of the above statements are correct?

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?

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

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?

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?

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

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?

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?

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?

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?

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

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?

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