Question

FEI for a country in a year, is the ratio (expressed as a percentage) of its foreign equity inflows to its GDP. The figure given displays the FEIs for select Asian countries for 1997 and 1998.
It is known that China’s GDP in 1998 was 7% higher than its value in 1997, while India’s GDP grew by 2% during the same period. The GDP of South Korea, on the other hand, fell by 5%. Which of the following statements is/are true? I. Foreign equity inflows to China were higher in 1998 than in 1997.
I. Foreign equity inflows to China were higher in 1998 than in 1997.
II. Foreign equity inflows to China were lower in 1998 than in 1997. III. Foreign equity inflows to India were higher in 1998 than in 1997. IV.Foreign equity inflows to South Korea decreased in 1998 relative in 1997.
V. Foreign equity inflows to South Korea increased in 1998 relative in 1997.

• A. I, III and IV
• B. II, III and IV
• C. I, III and IV
• D. II and V

Answer 1

The correct option is D II and V

Option (D) is the correct answer. Check the video for the approach.