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Prelims-IAS –ECONOMICS MCQ Ans-31

QUESTION- Prelims-IAS – ECONOMICS MCQ-31
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1…

  • ANS-C
  • Capital Account tracks the movement of funds for investments and loans into and out of a country.
  • CAD may results into devaluation of currency.
  • CAD is the difference between the country’s export earnings plus inward remittances minus imports and outward remittances.

2..

  • ANS-B
  • FII is known as hot money and fly by night money.
  • Tapering of quantitative easing will lead to flight of dollars from the economy.

3..

  • ANS-C

4…

  • ANS-C
  • REER is generally inflation adjusted NEER. As RBI has now moved on to CPI as its main indicator, so the same is used now used for calculating REER

5..

  • ANS-B
  • Increase in supply of foreign exchange indicates that domestic currency is relatively in more demand presently thus leading to its appreciation.

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