External Sector, Trade and International Organisations: Practice MCQs with Notes
Notes and 21 practice MCQs on External Sector, Trade and International Organisations for OPSC ASO, OAS, OSSC and OSSSC.
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External sector
Balance of Payments: current account (trade in goods and services, remittances, income) + capital account (FDI, FPI, loans). Trade deficit when imports exceed exports. India is the world's largest recipient of remittances.
1991 BoP crisis — gold pledged; LPG reforms. Rupee convertible on current account (1994), not fully on capital account (Tarapore Committee).
Devaluation (by government) vs depreciation (by market) makes exports cheaper.
FEMA 1999 replaced FERA 1973. Foreign exchange reserves held by the RBI.
Organisation
Fact
IMF
1944 Bretton Woods; HQ Washington; SDR; balance of payments help
World Bank (IBRD)
1944; development loans; IDA soft loans
WTO
1 Jan 1995, replaced GATT (1947); HQ Geneva; India founding member
ADB
1966, Manila
New Development Bank (BRICS)
Shanghai, 2014
AIIB
Beijing, 2016
Practice questions
Sourced from the Odisha Public Service Commission where applicable.
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