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On the basis of the given information, calculate the value of:
- Fiscal deficit
- Primary deficit
| S.No. | Items | 2021-22 (₹ in crore) |
| (i) | Revenue Receipts | 20 |
| (ii) | Capital Expenditure | 15 |
| (iii) | Revenue Deficit | 10 |
| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
| (v) | Interest Payments | 4 |
Concept: Measures of Government Deficit
State any two features of public goods.
Concept: Objectives of Government Budget
State on which side of capital account/current account will the following transactions be recorded and why:
(i) Interest on loan received from Nepal
(ii) Import of mobile phones from China
Concept: Concept of Balance of Payments >> Capital Account
Read the following statements carefully:
Statement 1: Export of financial services by India will be recorded on credit side of current account.
Statement 2: Foreign Direct Investments in India will be recorded on credit side of capital account.
In the light of the given statements, choose the correct alternative:
Concept: Concept of Balance of Payments >> Current Account
As per the Reserve Bank of India (RBI) press report, dated 29th December, 2022:
"Net external commercial borrowings to India recorded an outflow of US$ 0.4 billion in the second quarter (2022-23)"
The above transaction will be recorded in the _______ account on ______ side of Balance of payments account of India.
Concept: Concept of Balance of Payments >> Capital Account
Read the following chart carefully and choose the correct alternative:
Concept: Concept of Balance of Payments >> Capital Account
‘Current account deficit in an economy must be financed by a corresponding capital account surplus’.
Do you agree with the given statement? Give valid reason(s) in support of your answer.
Concept: Concept of Balance of Payments >> Balance of Payments Surplus and Deficit
Identify the correct reason(s) that may affect the demand for foreign exchange in an economy.
- Imports of visibles
- Exports of invisibles
- Remittances by residents working abroad
- Purchase of assets abroad
Concept: Foreign Exchange Rate
