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External Sector Quiz MCQ Practice

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1. India's Balance of Payments records all economic transactions between:

  1. A. Only state governments
  2. B. Only public sector companies
  3. C. Residents of India and the rest of the world
  4. D. Only central and state governments
Answer: Residents of India and the rest of the world
Explanation: Residents of India and the rest of the world — verified fact for External Sector Quiz.
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2. Foreign Direct Investment (FDI) differs from Foreign Portfolio Investment (FPI) mainly because FDI implies:

  1. A. Only government-to-government loans
  2. B. Only short-term stock trading
  3. C. A lasting management interest/control in an enterprise
  4. D. Only currency speculation
Answer: A lasting management interest/control in an enterprise
Explanation: A lasting management interest/control in an enterprise — verified fact for External Sector Quiz.
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