Question

Which of the following may result in deficit in Current

Q: Answer-Which of the following may result in deficit in Current Account?

Excessive import of any commodity will cause huge outflow of foreign currency from India, thus causing a Current Account Deficit. Same is true for outflow of FII. FII are short term foreign investment in Indias debt or equity market. These are very volatile and temporary in nature. They may withdraw their investment overnight and invest in some other market for better return. Thats why this is also called Hot Money

Account?

A Excessive import of electronics items

B Excessive export of agriculture products

C Huge outflow of Foreign Institutional Investment (FII)

D Receiving huge remittance from abroad

E Both a and c

Practice Next

More Static GA Questions

Which of the following pairs are correctly matched?
The President may order a Joint sitting of both the Houses if
Section relating to “Commencement of business” (declaration by directors):
Forms and contents of Arbitral award are given under which section of Arbitration and Conciliation act, 1996?
Under Section 20 of the PC Act, the legal presumption arises only when:
In Hindustan Lever Employees’ Union v. Hindustan Lever Ltd. the Court discussed:
Professional communications between a client and his attorney are protected :
Which of the following new law replaces the IPC and the Evidence Act?
Under Section 431 BNSS, when an appeal from acquittal is filed, the High Court may:
Under Section 17 of the Credit Information Companies (Regulation) Act, 2005, a borrower, X, requests correction of inaccurate credit information maintai...

Which of the following may result in deficit in Current

Solution