The concept of 'Capital Account Liberalisation' involves: MCQ with Answer and Explanation

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The concept of 'Capital Account Liberalisation' involves:

A. Only the liberalisation of trade in goods

B. The removal or relaxation of restrictions on cross-border capital flows

C. The imposition of new capital controls

D. Only the liberalisation of the current account

Answer: Option B

Solution (By JKSSB Mock Tests)

Capital-account liberalisation refers to the reduction or elimination of legal barriers to the free movement of capital across national borders.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following is a capital account transaction in the balance of payments?

A. Foreign direct investment inflows

B. Interest payments on external debt

C. Export of software services

D. Remittances from non-resident Indians

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Correct Answer: Option A

Explanation:
Foreign direct investment is a capital account transaction. Software exports, remittances and interest payments are current account items.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'GeM' portal is operated by which organization?

A. NITI Aayog

B. RBI

C. Ministry of Commerce and Industry

D. Ministry of Finance

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Correct Answer: Option C

Explanation:
Government e-Marketplace is operated under the Ministry of Commerce and Industry.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'People's Bank of China' is the central bank of:

A. Vietnam

B. India

C. Japan

D. China

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Correct Answer: Option D

Explanation:
The People's Bank of China is China's central bank.

This question belongs to: Economy GK Economy Set 1

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