A
Both 1 and 2
B
Neither 1 nor 2
C
2 only
D
1 only
Correct answer: (d) 1 only
Explanation
Statement 1 is correct as FCNR(B) accounts are foreign currency denominated fixed deposit accounts maintained by non-residents in authorized Indian banks. Statement 2 is incorrect because unlike NRE accounts where the exchange risk is borne by the depositor, the exchange rate volatility risk in unhedged FCNR(B) deposits is borne by the deposit-taking bank.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2017 · Q77 · General Studies · 2 marks
Which of the following has/have occurred in India after its liberalization of economic policies in 1991? 1. Share of agriculture in GDP increased enormously. 2. Share of India's exports in world trade increased. 3. FDI inflows increased. 4. India's foreign exchange reserves increased enormously. Select the correct answer using the codes given below: -
2017 · Q81 · General Studies · 2 marks
What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: -
2026 · Q99 · General Studies · 2 marks
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2020 · Q50 · General Studies · 2 marks
If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be -
2020 · Q70 · General Studies · 2 marks
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