Which of the following is a capital account transaction in the balance of payments? MCQ with Answer and Explanation

Question
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
Answer: Option A
Solution (By JKSSB Mock Tests)
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
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Question #1
The 'National Food Security Act, 2013' provides subsidized food grains under which category?
A. Farmers only
B. Urban households only
C. Priority households and Antyodaya Anna Yojana households
D. All income groups equally
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Correct Answer: Option C

Explanation:
NFSA covers priority households and Antyodaya Anna Yojana households with subsidized food grains.
This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a qualitative tool of monetary policy?
A. Cash Reserve Ratio
B. Selective credit control
C. Repo rate
D. Open market operations
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Correct Answer: Option B

Explanation:
Selective credit controls (such as margin requirements and credit ceilings for specific sectors) are qualitative measures aimed at directing credit flow rather than controlling its overall volume.
This question belongs to: Economy GK Economy Set 1
Question #3
The New Economic Policy of 1991 was based on the principles of:
A. import substitution and trade restrictions
B. liberalization, privatization and globalization
C. nationalization and central planning
D. land reforms and cooperatives
Discuss
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Correct Answer: Option B

Explanation:
The 1991 New Economic Policy was based on liberalization, privatization and globalization.
This question belongs to: Economy GK Economy Set 1
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