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
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
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
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