Chapter 6: Open Economy Macroeconomics
Economics • Class 12 • Class 12 Macroeconomics
6
Open Economy Macroeconomics
Economics • Class 12 • Class 12 Macroeconomics
Related PYQs (29)
2016•Prelims•Paper 1 (GS)•Q.8
With reference to 'IFC Masala Bonds', sometimes seen in the news, which of the statements given below is/are correct?
1
The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
2
They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.
Indian Economy
2016•Prelims•Paper 1 (GS)•Q.18
Which of the following best describes the term 'import cover', sometimes seen in the news?
Economics
2016•Prelims•Paper 1 (GS)•Q.41
With reference to the 'Trans-Pacific Partnership', consider the following statements:
1
It is an agreement among all the Pacific Rim countries except China and Russia.
2
It is a strategic alliance for the purpose of maritime security only.
International Relations
2016•Prelims•Paper 1 (GS)•Q.60
The term 'Base Erosion and Profit Shifting' is sometimes seen in the news in the context of
International Economics and Taxation (GS-III)
2016•Prelims•Paper 1 (GS)•Q.77
The term 'Regional Comprehensive Economic Partnership' often appears in the news in the context of the affairs of a group of countries known as
GS-II
2017•Prelims•Paper 1 (GS)•Q.56
The Global Infrastructure Facility is a/an
International Institutions
2019•Prelims•Paper 1 (GS)•Q.63
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.
Economic and Social Development
2019•Prelims•Paper 1 (GS)•Q.65
In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis?
1
The foreign currency earnings of India's IT sector
2
Increasing the government expenditure
3
Remittances from Indians abroad
Economic and Social Development
2019•Prelims•Paper 1 (GS)•Q.67
Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
Economy
2019•Prelims•Paper 1 (GS)•Q.86
Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of Indian rupee?
Economics
2020•Prelims•Paper 1 (GS)•Q.17
"Gold Tranche" (Reserve Tranche) refers to
Economics
2020•Prelims•Paper 1 (GS)•Q.49
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.
Indian Economy
2020•Prelims•Paper 1 (GS)•Q.51
With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic?
Economy
2020•Prelims•Paper 1 (GS)•Q.52
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.
Economy
2021•Prelims•Paper 1 (GS)•Q.7
Consider the following :
1
Foreign currency convertible bonds
2
Foreign institutional investment with certain conditions
3
Global depository receipts
4
Non-resident external deposits
Investment Models
2021•Prelims•Paper 1 (GS)•Q.8
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?
Indian Economy
2022•Prelims•Paper 1 (GS)•Q.1
"Rapid Financing Instrument" and "Rapid Credit Facility" are related to the provisions of lending by which one of the following?
Economics (International Finance)
2022•Prelims•Paper 1 (GS)•Q.2
With reference to the Indian economy, consider the following statements :
1
An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
2
An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3
An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
Economics (Macroeconomics - Exchange Rates)
2022•Prelims•Paper 1 (GS)•Q.3
With reference to the Indian economy, consider the following statements :
1
If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2
If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3
If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.
Economics (Monetary Policy & Forex)
2022•Prelims•Paper 1 (GS)•Q.61
Consider the following statements :
1
Tight monetary policy of US Federal Reserve could lead to capital flight.
2
Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs).
3
Devaluation of domestic currency decreases the currency risk associated with ECBs.
Economic and Social Development
2022•Prelims•Paper 1 (GS)•Q.65
With reference to Convertible Bonds, consider the following statements :
1
As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2
The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.
Economic and Social Development
2018•Mains•GS-II•Q.19
What are the key areas of reform if the WTO has to survive in the present context of 'Trade War', especially keeping in mind the interest of India?
International Relations
2018•Mains•GS-III•Q.12
How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?
GS-III
2013•Prelims•Paper 1 (GS)•Q.41
The balance of payments of a country is a systematic record of
Economics
2013•Prelims•Paper 1 (GS)•Q.56
Which of the following constitute Capital Account?
1
Foreign Loans
2
Foreign Direct Investment
3
Private Remittances
4
Portfolio Investment
Economics
2013•Prelims•Paper 1 (GS)•Q.83
Which one of the following groups of items is included in India's foreign-exchange reserves?
Economics
2015•Prelims•Paper 1 (GS)•Q.3
The Fortaleza Declaration', recently in the news, is related to the affairs of
Economics
2015•Prelims•Paper 1 (GS)•Q.94
The problem of international liquidity is related to the non-availability of
Economics
2015•Prelims•Paper 2 (CSAT)•Q.42
The Global Financial Stability Report finds that the share of portfolio investments from advanced economies in the total debt and equity investments in emerging economies has doubled in the past decade to 12 percent. The phenomenon has implications for Indian policy makers as foreign portfolio investments in the debt and equity markets have been on the rise. The phenomenon is also flagged as a threat that could compromise global financial stability in a chain reaction, in the event of United States Federal Reserve's imminent reversal of its "Quantitative Easing" policy.
Which among the following is the most rational and critical inference that can be made from the above passage?
CSAT
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