Quiz-summary
0 of 5 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 5 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- Answered
- Review
-
Question 1 of 5
1. Question
India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility. Which of the recent moves indicate the above statement?
- Increasing the foreign portfolio investment limits in the Indian debt markets.
- Introducing the Fully Accessible Route (FAR) — through which non-residents can invest in specified government securities without any restrictions.
- Easing of external commercial borrowing.
- Allowing outbound FDI by Indian incorporated entities.
Select the correct answer code:
Correct
Solution: d)
India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility.
Some of the recent moves include increasing the foreign portfolio investment limits in the Indian debt markets, introducing the Fully Accessible Route (FAR) — through which non-residents can invest in specified government securities without any restrictions and the easing of the external commercial borrowing framework by relaxing end-user restrictions. Inward FDI is allowed in most sectors, and outbound FDI by Indian incorporated entities is allowed as a multiple of their net worth.
Incorrect
Solution: d)
India has come a long way in liberating the capital account transactions in the last three decades and currently has partial capital account convertibility.
Some of the recent moves include increasing the foreign portfolio investment limits in the Indian debt markets, introducing the Fully Accessible Route (FAR) — through which non-residents can invest in specified government securities without any restrictions and the easing of the external commercial borrowing framework by relaxing end-user restrictions. Inward FDI is allowed in most sectors, and outbound FDI by Indian incorporated entities is allowed as a multiple of their net worth.
-
Question 2 of 5
2. Question
Which of the following can be included in the Foreign Direct Investment?
- Foreign Currency Convertible bonds
- Reinvesting profits earned from overseas operations
- Non-resident external deposits
- Equity capital of unincorporated bodies
Select the correct answer code
Correct
Solution: c)
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. Broadly, foreign direct investment includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans”. FDI is the sum of equity capital, long-term capital, and short-term capital as shown in the balance of payments.
FDI is largely a matter of commercial business decisions and FDI inflow depends on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors.
Non-Resident external deposits are a ‘debt creating’ flow in balance of payments accounts and therefore, not part of Foreign Direct investments.
Non-Resident External (NRE) account is a rupee dominated account opened by an NRI to facilitate deposit of foreign currency earnings.
Incorrect
Solution: c)
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. Broadly, foreign direct investment includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans”. FDI is the sum of equity capital, long-term capital, and short-term capital as shown in the balance of payments.
FDI is largely a matter of commercial business decisions and FDI inflow depends on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors.
Non-Resident external deposits are a ‘debt creating’ flow in balance of payments accounts and therefore, not part of Foreign Direct investments.
Non-Resident External (NRE) account is a rupee dominated account opened by an NRI to facilitate deposit of foreign currency earnings.
-
Question 3 of 5
3. Question
Consider the following statements regarding World Trade Organization (WTO).
- The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
- It officially commenced operations in 1995, under the Marrakesh Agreement.
- After WTO came in to existence, General Agreement on Trade and Tariffs (GATT) ceased to exist.
Which of the above statements is/are correct?
Correct
Solution: a)
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
World Trade Organization, as an institution, was established in 1995. It replaced General Agreement on Trade and Tariffs (GATT) which was in place since 1946.
- The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, signed by 123 nations on 15 April 1994.
- India has been a member of GATT since 1948; hence it was party to Uruguay Round and a founding member of WTO.
- While WTO came in to existence in 1995, GATT didn’t cease to exist. It continues as WTO’s umbrella treaty for trade in goods.
Incorrect
Solution: a)
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
World Trade Organization, as an institution, was established in 1995. It replaced General Agreement on Trade and Tariffs (GATT) which was in place since 1946.
- The WTO officially commenced on 1 January 1995 under the Marrakesh Agreement, signed by 123 nations on 15 April 1994.
- India has been a member of GATT since 1948; hence it was party to Uruguay Round and a founding member of WTO.
- While WTO came in to existence in 1995, GATT didn’t cease to exist. It continues as WTO’s umbrella treaty for trade in goods.
-
Question 4 of 5
4. Question
Consider the following statements regarding Ministerial Conference of the World Trade Organization (WTO).
- The Ministerial Conference is the topmost decision-making body of the WTO, that is held in Geneva every year.
- The Ministerial Conference can take decisions on all matters under any multilateral trade agreements.
- It was only at the recent Ministerial Conference that members agreed on core rules for e-commerce regulation.
Which of the above statements is/are correct?
Correct
Solution: b)
The topmost decision-making body of the WTO is the Ministerial Conference.
The Ministerial Conference brings World Trade Organization (WTO) Members together at the ministerial level, usually every two years. The Ministerial Conference can take decisions on all matters under any multilateral trade agreements.
The WTO emerged in a largely analogue world in 1994. It was only at the Second Ministerial Conference (1998) that members agreed on core rules for e-commerce regulation
Incorrect
Solution: b)
The topmost decision-making body of the WTO is the Ministerial Conference.
The Ministerial Conference brings World Trade Organization (WTO) Members together at the ministerial level, usually every two years. The Ministerial Conference can take decisions on all matters under any multilateral trade agreements.
The WTO emerged in a largely analogue world in 1994. It was only at the Second Ministerial Conference (1998) that members agreed on core rules for e-commerce regulation
-
Question 5 of 5
5. Question
Consider the following statements regarding WTO’s Agreement on Agriculture.
- It entered into force with the establishment of the WTO.
- It is aimed to remove trade barriers and to promote transparent market access and integration of global markets.
- The WTO’s Agriculture Committee oversees implementation of the Agreement and provides a forum for members to address related concerns.
Which of the above statements is/are correct?
Correct
Solution: d)
WTO’s Agreement on Agriculture:
The Agreement on Agriculture (AoA) is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO on January 1, 1995.
It is aimed to remove trade barriers and to promote transparent market access and integration of global markets.
The WTO’s Agriculture Committee oversees implementation of the Agreement and provides a forum for members to address related concerns.
Incorrect
Solution: d)
WTO’s Agreement on Agriculture:
The Agreement on Agriculture (AoA) is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO on January 1, 1995.
It is aimed to remove trade barriers and to promote transparent market access and integration of global markets.
The WTO’s Agriculture Committee oversees implementation of the Agreement and provides a forum for members to address related concerns.
