SSC CGL Economy – External Sector – BoP, Forex, Trade & International Institutions – Level 3 · Challenge

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SSC CGL Economy – External Sector – BoP, Forex, Trade & International Institutions – Level 3 · Challenge – 12 questions, subject: Indian Economy. Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Statement-basedWhich is/are correct?
I. FEMA treats violations as civil offences.
II. FEMA came into force on 1 June 2000.
III. FERA was enacted in 1991.

Correct Answer: C [I and II only]

Explanation:

FERA is of 1973; FEMA 1999 came into force on 1 June 2000.

2.  
The rupee moves from ₹ 82 to ₹ 86 per US dollar. The rupee has depreciated by about:

Correct Answer: A [4.65%]

Explanation:

Base-flip: 4/86 × 100 ≈ 4.65% (4.88% is the dollar's rise, 4/82).

3.  
The rupee moves from ₹ 72 to ₹ 81 per US dollar. The dollar has appreciated by:

Correct Answer: B [12.5%]

Explanation:

9/72 × 100 = 12.5% (rupee fell 9/81 ≈ 11.11%).

4.  
Imaginary BoP (US$ bn): goods exports 430, goods imports 690, net services +170, net primary income −45, net secondary income +105. The CAB is:

Correct Answer: D [−30]

Explanation:

Answer: −30. −260 + 170 − 45 + 105 = −30.

5.  
Two-quantity comparisonTwo-quantity comparison (₹/$ rises from 60 to 75):
Quantity I: % appreciation of the dollar
Quantity II: % depreciation of the rupee

Correct Answer: A [Quantity I > Quantity II]

Explanation:

QI = 15/60 = 25%; QII = 15/75 = 20%.

6.  
Spot My Mistake“Export price index 120, import price index 150 → terms of trade = 150/120 × 100 = 125, so they improved.” The correct value is:

Correct Answer: B [80 – worsened]

Explanation:

ToT = Px/Pm × 100 = 120/150 × 100 = 80.

7.  
Odd pairWhich pair is NOT correctly matched?

Correct Answer: D [IDA – 1956]

Explanation:

IDA was set up in 1960; IFC in 1956.

8.  
A foreign fund holds 7% of a listed Indian company and a foreign company holds 4% of an unlisted Indian company. Their investments are classified as:

Correct Answer: A [FPI and FDI respectively]

Explanation:

Listed < 10% → FPI; any stake in an unlisted company → FDI.

9.  
Chronological orderArrange the WTO Ministerial Conferences in order:
1. Bali 2. Abu Dhabi 3. Singapore 4. Doha

Correct Answer: C [3, 4, 1, 2]

Explanation:

Singapore 1996 → Doha 2001 → Bali 2013 → Abu Dhabi 2024.

10.  
Who is the President of the World Bank Group (as on 15 October 2026)?

Correct Answer: C [Ajay Banga]

Explanation:

14th President; term began 2 June 2023 (worldbank.org).

11.  
Under the WTO Agreement on Agriculture, direct payments made under production-limiting programmes are placed in the:

Correct Answer: A [Blue box]

Explanation:

Blue box = support linked to production limits; Amber = trade-distorting (limited); Green = minimal distortion.

12.  
Which of the following was NOT a cause of India's 1991 balance of payments crisis?

Correct Answer: B [A large surplus in the current account]

Explanation:

The crisis came from a widening current account DEFICIT, not a surplus.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Indian Economy book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-indian-economy

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