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.
China’s foreign equity inflows in 1998 were 10 times that of India. It can be concluded that

• A. China’s GDP in 1998 was 40% higher than that of India.
• B. China’s GDP in 1998 was 70% higher than that of India.
• C. China’s GDP in 1998 was 50% higher than that of India.
• D. No inference can be drawn about relative magnitudes of China’s and India’s GDP.

Answer 1

The correct option is C China’s GDP in 1998 was 50% higher than that of India.

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