Question

Match the following concepts to their terminologies:

• A. Protectionism
• B. Import Substitution
• C. Foreign Exchange
• D. FERA

Answer 1

1. Protectionism is the theory or practice of restricting the trade of an economy with other economies to allow domestic industries to flourish.
2. The trade and economic policy of replacing foreign imports with domestic production are called "Import Substitution Industrialisation".
3. Foreign exchange reserves are reserves of foreign currency that are held by the central bank of an economy.
4. FERA is the Act which mandates that all foreign exchange will be regulated by the RBI.