Globalisation in India

Q.

When does the balance of payment deficit occur?

Q. Which among he following situations can lead to deficit balance of payments for a country?

1. More export than import
2. More import than export
3. Equal amount of imports and exports
4. Only export to other countries

Q. In which year did India face the balance of payments crisis?

1. 1987
2. 1991
3. 1993
4. 1975

Q. Write any five aims and functions of the World Trade Organisation.

Q. In case of India, which of the following plays the role of the central bank?

1. Federal Reserve of India
2. Bank of India
3. Reserve Bank of India
4. State Bank of India

Q. In a financial year, a country recorded import of 15 billion dollar and export of 10 billion dollar. Which among the following terms can be used for the balance of payment of the country for that year?

1. Surplus in balance of payment
2. Deficit in balance of payment
3. Balanced trade
4. International trade deficit

Q. How do the international organisations influence the policymaking process of countries in a globalised world economy?

1. By regulating and dictating terms for international trade
2. By restricting trade among the countries
3. By putting economic sanctions
4. By granting loans

Q. Which of the following was the immediate cause of the Gulf War?

1. European attack on the Gulf countries
2. Global oil price hike
3. Invasion of Kuwait by Iraq
4. Political instability in the Gulf countries

Q. Why did the political instability in the Gulf countries impact India's economic interest in 1990?

1. Gulf countries host the headquarters of WTO and IMF.
2. Gulf countries are located in an oil-rich region.
3. Most of the Gulf countries are ruled by dictators.
4. Gulf countries control the lion's share of the world trade.

Q. Balance of payment reflects the record of international monetary transactions.

1. True
2. False

Q.

Why is the fiscal deficit important?