{"id":88201,"date":"2025-06-01T07:04:34","date_gmt":"2025-06-01T07:04:34","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=88201"},"modified":"2025-06-01T07:04:34","modified_gmt":"2025-06-01T07:04:34","slug":"which-one-of-the-following-is-not-correct-in-the-context-of-balance-of","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-is-not-correct-in-the-context-of-balance-of\/","title":{"rendered":"Which one of the following is not correct in the context of balance of"},"content":{"rendered":"

Which one of the following is not correct in the context of balance of payments of India during 2013-2014?<\/p>\n

[amp_mcq option1=”India’s exports were less than its imports” option2=”Trade balance was negative” option3=”Net invisibles were positive” option4=”Capital account balance was negative” correct=”option4″]<\/p>\n

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This question was previously asked in<\/div>\n
UPSC NDA-2 – 2015<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe correct answer is D) Capital account balance was negative. Based on official data for India’s balance of payments during the financial year 2013-2014, India had a significant trade deficit (exports were less than imports, leading to a negative trade balance). Net invisibles (services, transfers, income) were positive, helping to offset part of the trade deficit. Crucially, the capital account recorded a *surplus* (positive balance), driven by foreign investments and other capital inflows, which helped finance the current account deficit. Therefore, the statement that the Capital account balance was negative is incorrect.
\n<\/section>\n
\nIn 2013-14, India experienced a current account deficit financed by a surplus in the capital account.
\n<\/section>\n
\nFor 2013-14, India’s trade deficit was around $137.5 billion. Net invisibles surplus was around $93.4 billion, resulting in a current account deficit of $44.1 billion. The capital account surplus was around $48.0 billion, which covered the current account deficit and led to an overall increase in foreign exchange reserves.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following is not correct in the context of balance of payments of India during 2013-2014? [amp_mcq option1=”India’s exports were less than its imports” option2=”Trade balance was negative” option3=”Net invisibles were positive” option4=”Capital account balance was negative” correct=”option4″] This question was previously asked in UPSC NDA-2 – 2015 Download PDFAttempt Online The … <\/p>\n

Detailed SolutionWhich one of the following is not correct in the context of balance of<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1094],"tags":[1443,1226],"class_list":["post-88201","post","type-post","status-publish","format-standard","hentry","category-upsc-nda-2","tag-1443","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"\nWhich one of the following is not correct in the context of balance of<\/title>\n<meta name=\"description\" content=\"The correct answer is D) Capital account balance was negative. Based on official data for India's balance of payments during the financial year 2013-2014, India had a significant trade deficit (exports were less than imports, leading to a negative trade balance). Net invisibles (services, transfers, income) were positive, helping to offset part of the trade deficit. Crucially, the capital account recorded a *surplus* (positive balance), driven by foreign investments and other capital inflows, which helped finance the current account deficit. Therefore, the statement that the Capital account balance was negative is incorrect. In 2013-14, India experienced a current account deficit financed by a surplus in the capital account.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-is-not-correct-in-the-context-of-balance-of\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following is not correct in the context of balance of\" \/>\n<meta property=\"og:description\" content=\"The correct answer is D) Capital account balance was negative. Based on official data for India's balance of payments during the financial year 2013-2014, India had a significant trade deficit (exports were less than imports, leading to a negative trade balance). Net invisibles (services, transfers, income) were positive, helping to offset part of the trade deficit. Crucially, the capital account recorded a *surplus* (positive balance), driven by foreign investments and other capital inflows, which helped finance the current account deficit. Therefore, the statement that the Capital account balance was negative is incorrect. 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