Foreign Exchange, FDI And External Debt One Liner Questions & Answers
| Questions | Answers | |
| 1 | Convertibility of the rupee implies – | Freely permitting the conversion of rupee to other currencies and vice-versa |
| 2 | Convertibility of the Rupee as it exists at present means – | Rupee is convertible into foreign currencies for all current transactions only |
| 3 | The Indian Rupee was made fully convertible on the current account in – | 1994 |
| 4 | The question of full capital account convertibility of India was examined by the Committee known as – | Tarapore Committee |
| 5 | Devaluation of a currency means – | Reduction in the value of a currency vis-a-vis major internationally traded currencies |
| 6 | In which year the rupee was devalued for the first time in India? | 1949 |
| 7 | The outcome of the devaluation of currency is – |
Increase of exports and decrease of imports in the country
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| 8 | The problem of International liquidity is related to the non-availability of – | Dollars and other hard currencies |
| 9 | A great deal of Foreign Direct Investment (FDI) to India comes from Mauritius than from many major and mature economies like the UK and France. Why? |
India has a double taxation avoidance agreement with Mauritius
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| 10 | In India, the Foreign Investment Promotion Board now works under – | Ministry of Finance |
| 11 | A country is said to be in a debt trap if – |
It has to borrow to make interest payments on outstanding loans
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| 12 | Resurgent India Bonds were issued in US dollars, Pound Sterling and – | Deutsche Mark |
| 13 | If the rupee per US Dollar exchange rate changes from Rs. 60 to Rs. 65 in a time period by the market forces, it implies – | Depreciation of Rupee |
| 14 | What is the name of the New Single European Currency – | Euro |
| 15 | In which year the new currency ‘Euro’ was introduced? | 1999 |
| 16 | Eurodollars are – | U.S. dollars circulating in Europe |
| 17 | Bangladesh’s currency is – | Taka |
| 18 | Baht is the currency of – | Thailand |
| 19 | The currency of China is – | Yuan |
| 20 | From which year the FEMA came into force? | 2000 |
| 21 | Which act came into force in place of FERA? | The FEMA |
| 22 | The Prevention of Money Laundering Act came into force in India during – | 2005 |