External Sector of Economy questions with answers

381 multiple-choice questions. Open any question for its answer and explanation.

Questions asked in State PSC and UPSC prelims, by topic. Each topic also has notes to read.

1. An Indian businessperson buys shares in a British car company. This transaction will be reflected in :Asked in UPSC CAPF 2023
2. 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 in US dollars. Which of the statements given above is/are correct?Asked in UPSC IAS 2019
3. Which country has signed an agreement on Civil nuclear cooperation with India in sept. 2008:Asked in RPSC RAS Prelims 2008
4. After the US Dollar-denominated debt, which of the following currency-denominated debt is the second largest component in India's external debt at the end of December 2021?Asked in Civil Judge 2022
5. Which is correct about the opening of Non Resident External account in India? 1. NRE accounts can be opened by NRIs and OCBs (Overseas Corporate Bodies) with authorized dealers and banks in all the forms of demand and term deposits. 2. Deposits in this account are allowed in any currency.Asked in GPSC Prelims CSP 2 2019
6. Which of the following statements are correct regarding World Bank's Remittance Prices Worldwide database? 1. According to the report India became the world's largest recipient of remittances by receiving 87 billion dollars in 2021 2. The USA is the biggest source accounting for 20% of these funds 3. India is followed by China, Mexico, Philippines and EgyptAsked in GPSC Prelims CSP 2 2022
7. Which of the following statements are correct in respect of ‘Agreement on use of Local Currencies for cross-border transactions’? (1) India and UAE have signed a memorandum in this Agreement. (2) This agreement enables a frame work for trade settlements in their respective national currencies. (3) This Agreement was signed by the Prime Ministers of India and UAE (4) Peekay Intermark Ltd. and Reserve Bank of India were the first users of this systemAsked in OPSC CS Prelims 2022
8. The terms 'Agreement on Agriculture', 'Agreement on the Application of Sanitary and Phytosanitary Measures' and 'Peace Clause' appear in the news frequently in the context of the affairs of theAsked in UPSC IAS 2015
9. Consider the following statements : 1. India is a member of the International Grains Council. 2. A country needs to be a member of the International Grains Council for exporting or importing rice and wheat. Which of the statements given above is/are correct ?Asked in UPSC IAS 2024
10. Term ‘Balance of Payment’ is used in relation to which of the following?Asked in UPPSC Upper Mains 2012
11. The Government of India has replaced FERA byAsked in UPPSC Upper Mains 2007
12. The World Bank has recently sanctioned e loan of 944 million dollars to India, for which of the following sectors, the loan is not meant for ?Asked in UPPSC Upper Mains 2007
13. In the year 2001, India offered a grant of five million dollars to Tajikistan toAsked in UPPCS Prelims 2002
14. Consider the following statements: Most international agencies which fund development programmes in India on intergovernmental bilateral agreements, mainly provide I. Technical assistance. II. Soft loans which are required to be paid back with interest. III. Grants, not required to be paid back. IV. Food assistance to alleviate poverty. Of these statementsAsked in UPPCS Prelims 1996
15. Which country has highest loan from world bank after India:Asked in RPSC RAS Prelims 2010
16. Which among the following will be a debit entry in India's balance of payments?Asked in westbengal/WBCS Main 2019 Paper 5 2019
17. In May 2024, with which of the following countries India has signed a Visa Waiver Agreement for diplomatic passports? - Question not attemptedAsked in Department Recruitment 2024 (Research Scholar) 2024
18. Which of the following statements is/are correct? Most of India's reserves is held in the form of foreign currency. There is no cost of holding foreign currency as reserves by a nation. Select the correct answer using the code given below.Asked in UPSC CDS 1 2024
19. Which of the following is/are treated as artificial currency?Asked in HPPSC HPAS Prelims 2014
20. Which of the following terms are components of forex reserves? 1. Foreign Currency Assets 2. Gold 3. Special Drawing Rights 4. The Reserve in the Internatior Monetary FundAsked in OPSC CS Prelims 2022
21. Which one of the following groups of items is included in India's foreign-exchange reserves?Asked in UPSC IAS 2013
22. The problem of international liquidity is related to the non-availability ofAsked in UPSC IAS 2015
23. Recently, which one of the following currencies has been proposed to be added to the basket of IMF's SDR?Asked in UPSC IAS 2016
24. Which of the following best describes the term 'import cover', sometimes seen in the news?Asked in UPSC IAS 2016
25. "Gold Tranche" (Reserve Tranche) refers toAsked in UPSC IAS 2020