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UPSC 1995: Which of the following pairs are correctly matched? I. Increase in foreign exchange reserves ................. Monetary expansion II. Low import growth rate in India ...................... Recession in Indian Industry III. Euro issues ................ Shares held by Indian companies in European countries IV. Portfolio investment ............... Foreign institutional investors Select the correct answer by using the following codes:
(a)I, II and IV
(b)III and IV
(c)I, II and III
(d)I, II, III and IV
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Not attemptedCorrect Answer: (a) I, II and IV
1) A rise in foreign-exchange reserves expands the monetary base, causing monetary expansion. 2) Weak growth of imports often signals slack domestic industrial demand, i.e., recession. 4) Portfolio investment denotes capital inflows by foreign institutional investors. 3) Euro-issues are international bonds/equity raised abroad by Indian companies, not shares they hold in Europe, so pair III is incorrect. Hence only I, II and IV are correctly matched. ([licchavilyceum.com](https://licchavilyceum.com/upsc-civil-services-prelims-1995-solved-question-paper/))
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Frequently Asked Questions
What is the correct answer to this UPSC 1995 Indian Economy question?▼
The correct answer is option (a): I, II and IV. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this External Sector & Balance Of Payments question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1995, GS Paper 1, as Question 35. It falls under Indian Economy > External Sector & Balance Of Payments.
What is the difficulty level of this UPSC question?▼
This question is rated "difficult". It is a challenging question that demands deep subject knowledge and analytical thinking.
How many UPSC Prelims questions have been asked from External Sector & Balance Of Payments?▼
UPSC has asked 49 questions from External Sector & Balance Of Payments (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.