MCQs on Entertainment Current Affairs

4541.

A persistent trade deficit can potentially lead to:

A An increase in foreign exchange reserves.

B Appreciation of the domestic currency.

C Depletion of foreign exchange reserves and depreciation of the domestic currency.

D Lower inflation rates.

4542.

Which of the following is a strategy employed by the government to promote exports?

A Increasing import duties on raw materials.

B Negotiating favorable trade agreements with other countries.

C Restricting the availability of foreign exchange for exporters.

D Reducing investment in trade infrastructure.

4543.

The 'Make in India' initiative aims to address the trade deficit by:

A Encouraging more imports of finished goods.

B Boosting domestic manufacturing and reducing reliance on imports.

C Imposing higher tariffs on all imported goods.

D Discouraging exports to conserve domestic resources.

4544.

Which of the following is a major factor that can contribute to a widening trade deficit for India?

A A significant increase in the export of software services.

B A sharp decline in the price of crude oil.

C A substantial increase in the import of crude oil and other essential goods.

D A depreciation of the Indian Rupee.

4545.

A trade deficit occurs when:

A A country's exports are greater than its imports.

B A country's imports are greater than its exports.

C A country has a surplus in its services trade.

D A country's foreign exchange reserves are at an all-time high.

4546.

Foreign Direct Investment (FDI) is generally preferred over volatile portfolio flows for financing external needs because:

A FDI is more prone to sudden withdrawal during economic downturns.

B FDI typically involves long-term commitment and contributes to asset creation.

C FDI does not require any regulatory approval.

D FDI leads to immediate currency appreciation.

4547.

Which institution in India plays a crucial role in monitoring and managing the country's external debt?

A Securities and Exchange Board of India (SEBI)

B Reserve Bank of India (RBI) and Ministry of Finance

C NITI Aayog

D Comptroller and Auditor General of India (CAG)

4548.

An increase in a country's external debt, if not managed properly, can lead to:

A Increased foreign exchange reserves.

B Currency appreciation and lower import costs.

C Strain on foreign exchange reserves and potential currency depreciation.

D Reduced dependence on foreign capital.

4549.

Which of the following is a key indicator used to assess the sustainability of a country's external debt?

A Inflation Rate

B Fiscal Deficit

C Debt-to-GDP Ratio

D Current Account Surplus

4550.

External debt of a country refers to:

A The total debt owed by its citizens to domestic banks.

B The total debt owed by the country to foreign creditors.

C The debt incurred by the central bank for monetary policy operations.

D The internal debt of the central government.

MCQs - 2026-04