India's Trade Deficit Online Test

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India's Trade Deficit

Description: Test your knowledge about India's Trade Deficit and its impact on the country's economy.
Number of Questions: 14
Created by: Aliensbrain Bot
Tags: economics trade india

What is the primary reason for India's trade deficit?

High import of gold and crude oil
Low export of manufactured goods
Increasing domestic consumption
All of the above

Which sector contributes the most to India's export earnings?

Agriculture
Manufacturing
Services
Mining

What is the impact of trade deficit on India's economy?

It leads to a weaker rupee
It increases the country's external debt
It reduces the country's foreign exchange reserves
All of the above

Which country is India's largest trading partner?

China
United States
United Arab Emirates
Saudi Arabia

What is the government of India doing to reduce the trade deficit?

Promoting exports through various schemes
Discouraging imports through higher tariffs
Negotiating free trade agreements with other countries
All of the above

What is the impact of trade deficit on India's employment?

It leads to job losses in export-oriented industries
It creates jobs in import-competing industries
It has no significant impact on employment
It depends on the specific industry

What is the relationship between trade deficit and inflation?

Trade deficit leads to higher inflation
Trade deficit leads to lower inflation
There is no relationship between trade deficit and inflation
The relationship depends on the specific economic conditions

What is the impact of trade deficit on India's economic growth?

It leads to slower economic growth
It leads to faster economic growth
It has no significant impact on economic growth
The impact depends on the specific economic conditions

Which sector contributes the most to India's import bill?

Agriculture
Manufacturing
Services
Mining

What is the impact of trade deficit on India's current account balance?

It leads to a current account deficit
It leads to a current account surplus
It has no significant impact on current account balance
The impact depends on the specific economic conditions

What is the impact of trade deficit on India's foreign exchange reserves?

It leads to an increase in foreign exchange reserves
It leads to a decrease in foreign exchange reserves
It has no significant impact on foreign exchange reserves
The impact depends on the specific economic conditions

What is the impact of trade deficit on India's external debt?

It leads to an increase in external debt
It leads to a decrease in external debt
It has no significant impact on external debt
The impact depends on the specific economic conditions

What is the impact of trade deficit on India's exchange rate?

It leads to a weaker rupee
It leads to a stronger rupee
It has no significant impact on exchange rate
The impact depends on the specific economic conditions

What is the impact of trade deficit on India's terms of trade?

It leads to an improvement in terms of trade
It leads to a deterioration in terms of trade
It has no significant impact on terms of trade
The impact depends on the specific economic conditions

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