Answer-With reference to ‘International Investment Position (IIP)’, consider the following statements: 1.In...

India has a negative IIP. Indias international financial assets covered 68.5 of international financial liabilities as of end September 2022. Hence, statement 1 is correct and statement 3 is incorrect. The International Investment Position IIP is a statistical statement that shows at a point in time the value and composition of a financial assets of residents of an economy that are claims on non-residents and gold bullion held as reserve assets, and b liabilities of residents of an economy to non-residents. The difference between an economys external financial assets and liabilities is the economys net IIP, which may be positive or negative. Hence, statement 2 is correct.

Question

With reference to ‘International Investment Position (II

P ’, consider the following statements: 1.India has a negative Net IIP. 2.The Net IIP position determines whether a country is a net creditor or debtor nation by measuring the difference in its external assets and liabilities. 3.India’s international financial assets covered 90% of international financial liabilities as of end September 2022. Which of the statements given above is/are correct?

A 1 only

B 1 and 2 only

C 1 and 3 only

D 2 only

E 1, 2 and 3

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