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
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?
What is the idea that a country should be self-sufficient and not participate in international trade called?
According to Harrod-Domar growth model for the full capacity use of capital and labour or for full employment it is necessary that
Consider the following statements:
(1) Hike in global oil prices can widen the Current Account Deficit (CAD) of India.
(2) Higher CAD can lead to depreciation of the currency.
Which among the above statements is/are correct?
Which of the following affect the pricing of a currency option?
(A) Spot exchange rate
(B) Exercise rate
(C) Foreign risk-free rate of return
(D) Domestic risk-adjusted rate
(E) Time to expiration
Choose the correct answer from the options given below:
