Multiple Choice Questions on Consider the following 1 BoP crisis arises when the countrys Forex re........... for UPSC EPFO Exam Preparation

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Indian Economy

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Indian Economy - Understanding the basics of Indian economic system

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        Consider the following:

    1.    BoP crisis arises when the country's Forex reserves are not enough to balance a combined deficit in current and capital accounts for a sustained time.

    2.    BoP crisis can be tackled through devaluation.

    3.    World Bank helps countries to overcome their BoP crisis.

    Choose the correct answer from the codes Below

    1 and 2   

    Correct Answer

    2 and 3

    Incorrect Answer

    1 and 3   

    Incorrect Answer

    All are correct

    Incorrect Answer
    Explanation:

    It is not World Bank but IMF that helps countries overcome their BoP crisis but puts forth certain conditionalities such as ushering of structural reforms.


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