The BOP crisis of 1991 involved a shortage of?
Foreign exchange
India's Balance of Payments (BOP) crisis of 1991 was caused by a severe shortage of foreign exchange reserves. By June 1991, India's forex reserves had fallen to barely two weeks of import cover, forcing India to pledge gold and approach the IMF and World Bank for emergency assistance, triggering landmark economic liberalization reforms under PM P.V. Narasimha Rao and Finance Minister Manmohan Singh.
Similar Questions
A _______ is not constrained by prior work.
Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).
Assertion (A): India had to approach the IMF and World Bank in 1991 for a bailout loan.
Reason (R): Foreign exchange reserves had declined to the point that they could barely finance two weeks of imports.
Important Questions from External Sector and Currency Exchange rate
Consider the following :
1. Foreign currency convertible bonds
2. Foreign institutional investment with certain conditions
3. Global depository receipts
4. Non-resident external deposits
Which of the above can be included in Foreign Direct Investments?
Procedure for online trading involve(s) which of the following step(s)?
I. Make an application to open a Demat Account and Online Trading Account.
II. Allocate funds from the bank account to the trading account.
III. Once the order is confirmed, it is placed in the stock exchange through the online trading system.
The balance of payments of a country is a systematic record of
What is the idea that a country should be self-sufficient and not participate in international trade called?
(A) : Devaluation results in expenditure switching in an economy.
(R) : Devaluation alters the composition of the current account of the balance of payments.
