Monday 28 April 2014

Module-4 Past Paper Questions and Answers (2 marks)

1. What is balance of payment

A system of recording all of a country's economic transactions with the rest of the world over a period of one year


2. Mention any two features of Indian foreign trade

Less percentage of world trade’

Changing composition of exports

Changing composition of imports


3. Define foreign trade

Exchange of goods and services between countries. Foreign trade consists of export and import of a goods and services from a country.

4. What is import substitute?

Replacing foreign imports to domestic production


5. State any two method of Credit Control of RBI

Qualitative method and Quantitative method


6. What is Bank rate policy

Determination of interest rate which a central bank will advance short term loan to commercial bank.

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