1. Which one of the following represents capital account convertibility of a currency?

2. 'Most Favoured Nation Clause' under GATT requires

3. Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I List-II (a) Unrequited receipts 1. Gifts, reparations received from foreigners (b) Accomodating 2. Lending, borrowing finance and gold transfer (c) Transfer items 3. Commercial imports and exports (d) Autonomous items 4. Currency transfer by monetary authority Codes: (a) (b) (c) (d)

4. The Ricardian theory of comparative advantage relates to

5. A tariff will not have any effect on revenue if the duty imposed is

6. Which one of the following items is NOT included in the 'invisibles' on current account of the balance of payments of India?

7. An Optimum tariff

8. According to the elasticity approach, for a devaluation to have a positive effect on a country's trade balance, the sum of the elasticities of demand for a country's exports and of its demand for imports has to be equal to

9. Consider the following statements: Under the gold-standard inflow of gold from the deficit to the surplus nation results in
1. a fall in the interest rate in the surplus nation.
2. a fall in the interest rate in the deficit nation.
3. an outflow of capital from surplus to deficit nation.
4. an outflow of capital from deficit to surplus nation. Of the above statements:

10. Given the usual shapes of LM and IS curves and BOP curve, if there is a shift in the LM curve to the right, the economy will face

11. Assume that the nominal rate of tariff on imports of final commodity is 30%. The nominal rate of traiff on the imported inputs is 10% and the ratio of imported inputs to the value of the final commodity is 50%. Then the effective rate of tariff will be

12. Consider the following statements: The equivalance between the effects of a tariff and a quota which limits imports by the same amount depends on the assumption that,
1. there are competitive condiditons prevailing abroad.
2. there is perfect competition among quota holders.
3. there is free competition within the domestic import competing industry. Of these statements

13. Which one of the following assumptions is the most important assumption in the Heckscher–Ohlin theorem of international trade?

14. The above graph shows different effects of tariffs in partial equilibrium. Which one of the following indicates the revenue effect of a tariff equal to PP1 per unit?

15. For the Heckscher-Ohlin theory of trade to be valid, the relative factor endowments of two countries should be

16. Match List-I with List-II and select the correct answer using the codes given below the lists
List-I List-II (a) Hamilton-List 1. Trade creation and Trade diversion effects (b) Marshall-Lerner 2. Infant-Industry argument (c) F.Y. Edgeworth 3. Elasticity approach (d) Jacob Viner 4. Impoverishing growth Codes: (a) (b) (c) (d)

17. Which one of the following transactions represents a credit entry in the current account of a country's balance of payments?

18. The balance of payments of a country is in equilibrium when the

19. In a three-country two-commodity model, countries being of unequal sizes, the domestie exchange ratio are as under: Country Domestic Exchange Ratio
1 2a : 1b
2 1a : 1b
3 1a : 2b As per this model, the stability in international trade is most likely at the international terms of trade of

20. Which of the following statements is not correct in respect of the balance of payments of a country?

21. Which one of the following pairs is not correctly matched.

22. The three offer curves viz., 0, 1, 2 of country cut the offer curve of  at points a, b, c which is equivalent to internatonal terms of trade as shown in the diagram below: From the above graph, it can be easily deduced that

23. Assertion (A): Special Drawing Rights (SDRs) have the characteristics of an international currency.
Reason (R): SDRs were introduced to increase international liquidity

24. Which one of the following items is NOT included in the current account of India's balance of payments?

25. Which of the following pairs of GATT rounds and the associated years are correctly matched?

1. First Round 1948
2. Kennedy Round 1964-67
3. Tokyo Round 1973-79
Select the correct answer using the codes given below: