Which of the following is a type of foreign capital inflow? MCQ with Answer and Explanation

Which of the following is a type of foreign capital inflow?
A. Only government tax revenue
B. Only domestic equity issuance
C. Foreign direct investment, portfolio investment and external commercial borrowings
D. Domestic bank deposits of residents
Answer: Option C
Solution (By JKSSB Mock Tests)
Foreign capital inflows include FDI, FPI, external commercial borrowings, trade credit and other external liabilities.

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Practice More Economy Set 1 Questions

Question #1
The 'Federal Reserve System' is the central bank of:
A. Germany
B. United States
C. Japan
D. United Kingdom

Correct Answer: Option B


Explanation:
The Federal Reserve System is the central bank of the United States.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Total Fertility Rate' is the average number of children born to a woman over her lifetime.
A. Only for urban women
B. False
C. Only for working women
D. True

Correct Answer: Option D


Explanation:
Total fertility rate is the average number of children a woman would have during her reproductive life.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'Liquidity Coverage Ratio' under Basel III?
A. It measures only long-term funding stability
B. It requires banks to hold sufficient high-quality liquid assets to cover net cash outflows over 30 days
C. It is related only to capital adequacy
D. It applies only to non-bank financial institutions

Correct Answer: Option B


Explanation:
The Liquidity Coverage Ratio (LCR) requires banks to maintain an adequate stock of unencumbered high-quality liquid assets that can be converted into cash to meet liquidity needs for a 30-calendar-day stress scenario.

This question belongs to: Economy GK Economy Set 1