MCQOPTIONS
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| 1. |
Many a times we read in the newspapers that when Foreign Capital is allowed to enter the country freely, it can affect the economy adversely. Which among the following is a correct reason for the above assumption? |
| A. | It affects the balance of payments of the country by adversely affecting the Current Account |
| B. | It poses risks to the value of the country's currency as well as management of local liquidity |
| C. | The foreign capital earns profit in the country which is repatriated |
| D. | The Balance of Trade of the country is badly affected by Foreign Capital Inflows |
| Answer» C. The foreign capital earns profit in the country which is repatriated | |