12th Class Economics Foreign Exchange Rate Question Bank Case - Based - Balance of Payments

  • question_answer
    India's balance of payments this year is going to be 'very very strong' on the back of significant improvement in ' exports and a fall in imports, as stated by Commerce and I Industry Minister Piyush Goyal.
    'We are in July at about 91% export level of July 2019 figures. Imports are still at about 70-71% level of July 2019.
    So, broadly, our balance of payments this year is going to be very, very strong, which is why we feel confident that
    Indian industry will see opportunities of themselves, will see opportunities of growth', he said.
    Country's trade turned surplus for the first time in 18 years as imports dropped by a steeper 47.59%. The country posted a trade surplus of $0.79 billion in June. It is because of government's efforts to support and promote domestic manufacturing and industry.
    Source: The Hindu, August 10, 2020
    On the basis of above imaginary information, answer the following questions:
    Import of PS 5 leads to an............ of foreign currency.
     

    A) surplus

    B) above

    C) outflow

    D) inflow

    Correct Answer: C

    Solution :

    [c] outflow    


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