EXTERNAL DEBT OF INDIA QUESTION AND ANSWER

EXTERNAL DEBT OF INDIA

EXTERNAL DEBT OF INDIA QUESTION AND ANSWER

1. One of the objectives of raising the internal debt is

(a) to control inflation

(b) to purchase arms and ammunition

(c) to build schools and hospitals

(d) to help the poor farmers in the country

Answer – a

2. The rapid increase of public debt of the Central Government of India since 1950-51 has been due to

(a) uncontrolled inflation

(b) mounting, shares of state governments from revenues raised by the central government

(c) mounting costs of financing public expenditure

(d) rising population

Answer – c

3. What is debt?

(a) Stock-flow Hypothesis

(c). Stock Hypothesis

(b) Flow Hypothesis

(d) None of the above

Answer – a

4. Foreign stands

(a) is received in Indian Currency

(b) is received in Foreign Currency

(c) is received in USA dollars from the United States

(d) is received in Foreign Currency which is used to finance imports

Answer – b

5. which is used to finance imports Which of the following debts is considered a burden the United States

(a) A personal debt

(b) the internal debt

(c) A municipal, debt

(d) the external debt

Answer – b

6. India’s external debt was ————— in March 2013

(a) 17.5 lakh crores

(b) 22 lakh crores

(c)4.80 lakh crores

(b) 22 lakh crores

(d) 13.5 lakh crores

Answer – b

7. At present the proportion of concessional debt in India’s external debt is—————-%. (March 2013)

(a) 10.5

(b) 25

(c) 35

(d) 28

Answer – a

8. The external debt as percentage of GDP was ————-, % in March 2011-12

(a) 15%

(b) 20%

(c) 45%

(d) 23%

Answer – d

9. The share of concessional debt in total external debt of India has a

(a) remained the same.

(b) doubled

(c) reduced

(d) increased

Answer – c

10. About ————— per cent of the external assistance has been in the form of

(a) 40.

(b) 30.

(c) 10.

(d) 90

Answer – d

11. In terms of indebtedness classification, the World Bank has categorized India as a ————— since 1999,1

(a) highly indebted

(b) less indebted

(c) severely highly indebted

(d) zero indebted

Answer – b

12. Among the top 15 debtor countries of the world, India is ranked the ————– (2013)

(a) tenth

(b) fifteenth

(c) third

(d) ninth

Answer – c

13. India’s debt service ratio ————- is of external current receipts (2012-13).

(a) 11.5%

(b) 30.55

(c) 6%

(d) 10%

Answer – c

EXTERNAL DEBT OF INDIA QUESTION AND ANSWER

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