Indian Economy MCQs


Q.  Which among the following can be substantially affected by the foreign capital inflows in a developing country such as India?
1. Exchange Rates
2. Domestic monetary conditions
3. Domestic Savings and Investments
Choose the correct option from the codes given below:


a. Only 1 & 2
b. Only 2 & 3
c. Only 1
d. 1, 2 & 3


ANSWER: See Answer
 
Capital inflows allow the recipient country to invest and consume more.

Capital inflows facilitate the attainment of the millennium development goals (MDGs) and the objective of national economic, empowerment and development strategy (NEEDs).

As the economy becomes more open and integrated with the rest of the world, capital flows will contribute significantly to the transformation of the developing economy.

Capital inflows are also necessary for macroeconomic stability as capital inflows affect a wide range of macroeconomic variables such as exchange rates, interest rates, foreign exchange reserves, domestic monetary conditions as well as saving and investments.

Some commonly observed effects of the capital inflows that have been documented include real exchange rate appreciation, stock market and real estate boom, reserve accumulation, monetary expansion as well as effect on production and consumption
MCQs:  What does Public sector in an economy means?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  What does a good with positive externalities known as?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which Economist worked on “Group Measurement,” which evaluated the impact of the NREGA project on India’s citizens?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which of the below problems occur in an economy?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which sector contributed the maximum to GDP?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which crop is affected by Pink bollworm?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  What is India’s rank in Fertilizer production?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Consider the following organisms 1. Agaricus 2. Nostoc 3. Spirogyra 4. Azospirillium Which of the above is/are used as biofertilizer/biofertilizers?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which food crop production increased maximum in India after Independence?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  What is India’s rank in the global groundnut production?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which country is the world’s largest palm oil exporter?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which fruit is called “King of Fruits”?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  What is the total earning of diary exports of India?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  With which organization are the meat Export-oriented units registered?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which among the following is a bird disease?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which among the following is incorrect regarding the National Dairy Development board?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Who is known as father of yellow revolution in India?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  What was production of oilseeds in 1986 before Yellow revolution?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which among the following is related to silver revolution in the country?
Category: General Knowledge Quiz,   Published by: teswesm
MCQs:  Which among the following is an urban agricultural practice?
Category: General Knowledge Quiz,   Published by: teswesm