Which of the following is a feature of the Indian capital account? MCQ with Answer and Explanation

Which of the following is a feature of the Indian capital account?
A. Complete convertibility for all capital transactions
B. Partial convertibility with controls on certain capital flows
C. Only current account convertibility without any capital flows
D. Complete ban on capital inflows
Answer: Option B
Solution (By JKSSB Mock Tests)
India has achieved current account convertibility but maintains a managed and partial capital account convertibility with prudential controls on certain flows.

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Practice More Economy Set 1 Questions

Question #1
The 'General Agreement on Trade in Services' is part of:
A. World Bank
B. WTO
C. UNCTAD
D. IMF

Correct Answer: Option B


Explanation:
GATS is a WTO agreement covering trade in services.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Revenue deficit' indicates that the government's:
A. capital expenditure exceeds capital receipts
B. revenue receipts exceed revenue expenditure
C. revenue expenditure exceeds revenue receipts
D. total budget is balanced

Correct Answer: Option C


Explanation:
Revenue deficit is the excess of revenue expenditure over revenue receipts.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'New Development Bank' established by BRICS countries is headquartered in:
A. Shanghai
B. New Delhi
C. Moscow
D. Beijing

Correct Answer: Option A


Explanation:
The New Development Bank is headquartered in Shanghai, China.

This question belongs to: Economy GK Economy Set 1