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MCQs - 2026-04

2191.
Which of the following principles of quantum mechanics are fundamental to the operation of quantum computers?
A Superposition and Entanglement
B Classical Mechanics and Thermodynamics
C Relativity and Gravitation
D Electromagnetism and Optics
2192.
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.
2193.
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.
2194.
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.
2195.
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.
2196.
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.
2197.
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.
2198.
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)
2199.
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.
2200.
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