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 (C)</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 (C)</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 (D)</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 (B)</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 (A)</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 (D)</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 (C)</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 (C)</p> Signup and view all the answers

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