The 'errors and omissions' item in the balance of payments is used to: MCQ with Answer and Explanation

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The 'errors and omissions' item in the balance of payments is used to:

A. show foreign exchange reserves

B. show exports

C. balance the statistical discrepancies

D. show imports

Answer: Option C

Solution (By JKSSB Mock Tests)

Errors and omissions balance statistical discrepancies so the BoP accounts sum to zero.

This question belongs to: Economy GK Economy Set 1

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Question #1

The Green Revolution in India was primarily associated with:

A. organic farming

B. high-yielding varieties of wheat and rice

C. increasing output of pulses

D. horticulture

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Correct Answer: Option B

Explanation:
The Green Revolution introduced high-yielding varieties of wheat and rice.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of the Indian service sector?

A. Complete dependence on agriculture

B. Largest contributor to GDP and significant employment generation in recent decades

C. Absence of IT and ITES services

D. Low contribution to GDP

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Correct Answer: Option B

Explanation:
The services sector is the largest contributor to India's GDP and has been a major driver of growth, particularly through IT, financial services, trade and tourism.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Base Year' in national income accounting is important because it:

A. Determines the fiscal deficit target

B. Fixes the exchange rate

C. Determines the tax rates

D. Provides the price structure for calculating real GDP

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Correct Answer: Option D

Explanation:
The base year supplies the constant price weights used to compute real GDP and other volume measures, enabling meaningful comparisons over time.

This question belongs to: Economy GK Economy Set 1

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