The 'Balance of Payments' current account includes which of the following? MCQ with Answer and Explanation

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The 'Balance of Payments' current account includes which of the following?

A. Foreign direct investment

B. Portfolio investment

C. External commercial borrowing

D. Net income from abroad

Answer: Option D

Solution (By JKSSB Mock Tests)

Net income from abroad is part of the current account.

This question belongs to: Economy GK Economy Set 1

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Question #1

The term 'Reverse Repo Rate' is used by the RBI to:

A. Determine the fiscal deficit

B. Absorb excess liquidity from the banking system

C. Inject liquidity into the system

D. Fix the long-term interest rates only

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Correct Answer: Option B

Explanation:
Under the reverse repo window, the RBI absorbs excess liquidity from banks by borrowing funds from them at the reverse repo rate.

This question belongs to: Economy GK Economy Set 1

Question #2

The Wholesale Price Index in India measures price movements of:

A. goods and services

B. agricultural products only

C. goods only

D. services only

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Correct Answer: Option C

Explanation:
WPI measures price movements of goods only; it does not include services.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Reverse repo rate' is the rate at which RBI:

A. lends to banks

B. borrows from banks against government securities

C. rediscounts bills

D. lends to the government

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Correct Answer: Option B

Explanation:
Reverse repo is the rate at which RBI borrows from banks against government securities.

This question belongs to: Economy GK Economy Set 1

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