International Investment Position (IIP) of India
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Questions and Answers

What is the primary function of the International Investment Position?

  • To calculate a country's inflation rate
  • To show the value and composition of financial assets and liabilities of an economy (correct)
  • To measure a country's economic growth rate
  • To determine a country's trade balance
  • What does a negative Net IIP indicate about a country?

  • The country has a high GDP
  • The country is a net creditor nation
  • The country has a stable economy
  • The country is a net debtor nation (correct)
  • What happened to Indian residents' overseas financial assets as of end-September 2022 compared to end-March 2022?

  • They remained unchanged
  • They decreased by 7.9 percent (correct)
  • They increased by 10 percent
  • They increased by 7.9 percent
  • What is the significance of the Net IIP in understanding a country's financial condition?

    <p>It reflects a country's financial soundness</p> Signup and view all the answers

    What is included in the calculation of an economy's external financial assets?

    <p>Financial assets of residents of an economy that are claims on non-residents and gold bullion held as reserve assets</p> Signup and view all the answers

    What percentage of India's international financial assets did the reserve assets account for as of end-September 2022?

    <p>62.9 per cent</p> Signup and view all the answers

    What is the relationship between the Net IIP and the Balance of Payments (BoP) transactions?

    <p>The Net IIP, along with BoP transactions, reflects the domestic economy's set of international accounts</p> Signup and view all the answers

    What was the primary reason for the fall in international liabilities between end-March 2022 and end-September 2022?

    <p>Direct investment (net) outflows</p> Signup and view all the answers

    What was the value of net claims of non-residents on India as of end-September 2022?

    <p>US$ 389.6 billion</p> Signup and view all the answers

    What percentage of total external liabilities was accounted for by debt liabilities as of end-September 2022?

    <p>50 per cent</p> Signup and view all the answers

    What percentage of international financial liabilities were covered by India's international financial assets as of end-September 2022?

    <p>68.5 per cent</p> Signup and view all the answers

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