1

With reference to Foreign Direct Investment in India, which one of the following is
considered its major characteristic?

2

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 its merchandise imports.
2. India�s imports of iron and steel, chemicals, fertilisers and machinery have decreased
in recent years.
3. India�s exports of services are more than its imports of services.
4. India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:

3

Consider the following statements:
1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
2. �Textile and textile articles� constitute an important item of trade between India and
Bangladesh.
3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
Which of the statements given above is/are correct

4

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 depending on short-term foreign borrowings
(2) Opening up to more foreign banks
(3) Maintaining full capital account convertibility
Select the correct answer using the code given below

5

Consider the following: (1) Foreign currency convertible bonds (2) Foreign institutional investment with certain conditions (3) Global depository receipts (4) Non-resident external deposits Which of the above can be included in Foreign Direct Investments?

6

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

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