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Quiz on [Economic Survey 2022-23, Chapter 11]
Q1. According to Economic Survey 2022-23, consider the following two global shocks in the
new millennium:
1. one an economic shock

2. the other, a health shock
Which of the above statements is/are responsible for very contrasting repercussions on the
global economy?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q2. According to Economic Survey 2022-23, consider the following statements:
1. The global financial crisis in 2007-08 as the inflationary pressures were muted,
interest rates were extremely low for long years.
2. The easing financial conditions supported global economic growth, which reached 4.5
per cent in 2010.
Which of the above statements is/are correct?
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. The Covid-19 pandemic is another shock to global growth performance, with

economic growth down to a negative of 2.8 per cent in 2020.
By: Vibhas Jha

2. The following two years saw inflation rates rise to multi-decade highs, fuelled by
global commodity and food price spikes which has been further amplified by the
Russia-Ukraine conflict.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q4. According to Economic Survey 2022-23, consider the following statements regarding
impact of US-Fed steps taken for normalisation:
1. The 10-year Treasury yield in the US increased almost six-fold between mid-2020
and mid-2022.
2. Risk assets were sold off sharply triggering capital flight from many emerging and
frontier market economies, bringing to a halt the rebound of net capital flows to
developing countries
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. heightened uncertainty about the economic and policy outlook

2. exacerbated by high liquidity
Which of the above statements is/are reflecting the reasons for the volatility of interest rate
and price since April 2020?
a. 1 only
b. 2 only
By: Vibhas Jha

c. Both 1 and 2
d. Neither 1 nor 2
1. The global financial conditions have considerably tightened especially since April
2022, and the balance of risks is significantly skewed to the downside,
2. Global growth is forecast to slow from 6.0 per cent in 2021 to 3.2 per cent in 2022
and 2.7 per cent in 2023 according to the International Monetary Fund (IMF)
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. External public debt vulnerability concerns are being exacerbated as such debt in
developing economies is at record levels presently and most of it is owed to private
creditors, with much of it involving variable interest rates that could spike suddenly.
2. Emerging markets face a host of risks emanating from elevated external borrowing
costs, sticky high inflation, volatile commodity markets, uncertain global economic
growth outlook, and spillovers from policy tightening in advanced economies.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
By: Vibhas Jha

1. Trade is essential for developing countries to reap the benefit of increased

globalisation of products and financial markets.
2. Trade is not an end in itself but a means to balanced, equitable, and sustainable
development.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. The share of trade as a percentage of world GDP has been in the range of 50-60 per
cent since 2003 and stood at 52 per cent in 2020, according to the World Bank
database
2. For India, the share of trade as a percentage of GDP has been steadily increasing,
being above 40 per cent since 2005, the ratio stands at 46 per cent in 2021 and 50 per
cent for H1 of 2022.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. Global trade exhibited resilience in the first half (H1) of 2022, notwithstanding the
headwinds from the Russia-Ukraine conflict.
By: Vibhas Jha

2. Robust merchandise imports – emerging primarily from Europe, the United States,
and parts of the developing world supported the growth of merchandise trade in
H12022.
3. Other factors contributing to the trend were the appreciation of the dollar in the case
of the United States, un-favourable terms-of-trade effects in some large emerging
economies due to elevated energy prices.
Which of the above option(s) is/are correct?
a. 1 and 3 only
b. 2 and 3 only
c. 1 and 2 only
d. 1, 2 and 3 only
1. the increasing likelihood of a recession in the major economies and the tapering
demand for consumer durables;
2. aggressive monetary policy tightening by several central banks;
3. disorderly financial conditions;
4. continued supply-chain disruptions and elevated freight charges
Which of the above option(s) is/are factors for the global trade outlook turned grimmer in the
second half (H2) of 2022?
a. 2 and 3 only
b. 1 2 and 3 only
c. 2 3 and 4 only
d. 1, 2 3 and 4 only
1. Trade growth is likely to slow in the closing months of 2022 and into 2023, according
to the WTO Goods Trade Barometer
2. The current reading of 96.2 is below both the baseline value for the index and the
previous reading of 100.0, reflecting the slowdown in demand for traded goods.
By: Vibhas Jha

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. According to the WTO, world trade is expected to lose momentum in H2-2022 and
remain subdued in 2023.
2. The organisation forecasts global trade to grow in 2023 by just 1 per cent, a sharp
downward revision from the previous estimate of 3.4 per cent
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. (UNCTAD), in its Global Trade update of December 2022 has also noted that the
ongoing trade slowdown is expected to worsen for 2023
2. (UNCTAD), further stated that while the outlook for global trade remains uncertain,
positive factors appear to outweigh positive trends.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
By: Vibhas Jha

1. Trade as a percentage of GDP for India was in the range of 12-15 per cent in the
1980s; 16-25 per cent in the 1990s and 25-50 per cent in the 2000s.
2. International trade has been an important pillar of the resilience of India’s external
sector.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. India achieved an all-time high annual merchandise export of US$ 422.0 billion in
FY22
2. Non Petroleum and non-gems & jewellery exports in April-December 2022 were US$
233.5 billion
3. Petroleum, oil, and lubricants (POL) exports constituted about 21.1 per cent and
non-POL exports were 78.9 percent of total exports during FY23 (until December
2022).
a. 1 and 3 only
b. 2 and 3 only
c. 1 and 2 only
d. 1, 2 and 3 only
1. Significant strides in exports were registered in drugs and pharmaceutical, electronic

goods, engineering goods and organic and inorganic chemicals sectors in FY22.
By: Vibhas Jha

2. These sectors like drugs and pharmaceuticals, electronic goods, engineering goods
and organic and inorganic chemicals have sustained their growth momentum despite
the global headwinds in H1 FY23.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. Merchandise imports for the period April-December 2022 were US$ 551.7 billion as
against US$ 441.5 billion during the period April-December 2021.
2. Energy demand may be pushing India’s imports for fuel including coal and
Petroleum, Oil & Lubricants (POL), whose share rose to 37.1 per cent in total imports
in April-December 2022 against 30.4 per cent in the corresponding period last year
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. The USA remained the top export destination in April-November, 2022 followed by
UAE
2. The Netherlands has displaced China from the 4th spot as India's exporting partner.
a. 1 only
b. 2 only
c. Both 1 and 2
By: Vibhas Jha

d. Neither 1 nor 2
1. India’s services exports stood at US$ 254.5 billion in FY22 recording a growth of
23.5 per cent over FY21 and registered a growth of 32.7 per cent in April-September
2022 over the same period of FY22.
2. Services imports rose by 25.1 per cent between FY22 and FY21 to reach US$ 147.0
billion and registered growth of 36.7 per cent in April-September 2022 over the same
period of FY22.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. India’s Foreign Trade Policy (FTP) has, conventionally, been formulated for 10 years
at a time.
2. To provide policy stability during the pandemic period, the Foreign Trade Policy was
extended from 2020 to 2022.
3. The policy has been further extended till March 2023 on account of volatile global
economic and geopolitical situations and currency fluctuations.
a. 1 and 3 only
b. 2 and 3 only
c. 1 and 2 only
d. 1, 2 and 3 only
By: Vibhas Jha

1. The Export Preparedness Index8 has also been introduced to evaluate States’ potentials
and capacities.
2. RBI in partnership with the Institute of Competitiveness has prepared an Export
Preparedness Index to identify challenges and opportunities
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. In July 2022, the Reserve Bank of India (RBI) issued a circular permitting an
additional arrangement for invoicing, payment, and settlement of exports/imports in
Indian Rupees (INR) to promote the growth of global trade
2. The framework involves invoicing of exports and imports in INR, market-determined
exchange rates between the currencies of the trading partner countries, and settlement
through special Rupee Vostro accounts opened with authorised dealer banks in India
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q24. According to Economic Survey 2022-23, consider the following statements regarding
the Interest Equalisation Scheme:
1. This Scheme was formulated to give benefit in the interest rates being charged by the
banks to the exporters on their pre- and post-shipment rupee export credits.
By: Vibhas Jha

2. While extending the scheme, from 1 October 2021 onwards, subvention rates have
also been reduced.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q25. According to Economic Survey 2022-23, consider the following:
1. RODTEP scheme seeks remission of Central, State and Local duties/taxes/levies at

different stages at the Central, State, and local level, which are incurred in the process
of manufacturing and distribution of exported products, but are currently not being
refunded under any other duty remission scheme.
2. The Export Credit Guarantee Corporation (ECGC) supports Indian exporters and
banks by providing export credit insurance services. ECGC provides insurance cover
on the export consignment to protect exporters from the consequences of the payment
risks
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. Krishi Udan Scheme was launched in August 2020 on international and national
routes to assist farmers in transporting agricultural products so that it improves their
value realisation.
2. Krishi Udan 2.0 was launched in October 2022 enhancing the existing provisions,
mainly focusing on transporting perishable food products from the hilly areas,
NorthEastern states, and tribal areas.
By: Vibhas Jha

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. India considers Regional Trading Arrangements (RTAs) as ‘building blocks’ towards

the overall objective of trade liberalisation and as complementing the multilateral
trading system.
2. The economic rationale for FTAs was the diversification and expansion of India’s
exports to its trading partners,
3. India has so far concluded 13 FTAs and 6 Preferential Trade Agreements (PTAs)
a. 1 and 3 only
b. 2 and 3 only
c. 1 and 2 only
d. 1, 2 and 3 only
1. India-UAE Comprehensive Economic Partnership Agreement (CEPA) which was

signed on 18 February 2022 and officially entered into force on 1 May 2022
2. India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA), which
was signed on 2 April 2022 and entered into force on 29 December 2022
3. Recent FTAs are – (i) India-UK FTA, (ii) India-Canada CEPA/ Early Progress Trade
Agreement (EPTA), (iii) India-EU FTA.
a. 1 and 3 only
b. 2 and 3 only
By: Vibhas Jha

c. 1 and 2 only
d. 1, 2 and 3 only
1. India’s current account balance (CAB) recorded a deficit of US$ 36.4 billion (4.4
percent of GDP) in Q2FY23 in contrast to a deficit of US$ 9.7 billion (1.3 percent of
GDP) during the corresponding period of the previous year.
2. On a BoP basis, the net capital inflows declined to US$ 29.0 billion in H1FY23 from
US$ 65.0 billion in H1FY22 primarily driven by the FPI outflow of US$ 14.6 billion
in Q1FY23.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q30. According to Economic Survey 2022-23, consider the following statement:
1. While the impact of a sharp rise in oil prices was discernible in the widening of the
CAD, policy tightening by the US Fed and the strengthening of the US dollar led to
FPI inflows.
2. The net financial outflows fell short of the CAD, there was a depletion of foreign
exchange reserves on a BoP basis to the tune of US$ 25.8 billion in H1FY23 in
contrast to an accretion of US$ 63.1 billion in H1FY22.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
By: Vibhas Jha

1. On a financial year basis, i.e., from April to December 2022, the INR has depreciated
against US$ by 8.3 per cent.
2. Over the same period, the US dollar has appreciated by 4.4 per cent in terms of the
US dollar index
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Q32. According to Economic Survey 2022-23, consider the following statements
1. The Nominal Effective Exchange Rate (NEER) of the US dollar (27 economies)
appreciated by 7.8 per cent in the calendar year 2022, up to December, while the
NEER of India (64 economies) depreciated by 4.8 per cent
2. The Real Effective Exchange Rate (REER) - on a financial year basis, i.e., between
April 2022 and December 2022, the INR depreciated 3.4 per cent and 4.0 per cent
measured in terms of 6-currency and 40-currency trade weighted indices, respectively.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. financial assets of residents of an economy that are claims on non-residents and gold
bullion held as reserve assets
2. liabilities of residents of an economy to non-residents.
Which of the above statements is/are factors of the international investment position (IIP) ?
By: Vibhas Jha

a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. The Net IIP position determines whether a country is a net creditor or debtor nation
by measuring the difference in its external assets and liabilities.
2. The Net IIP, along with the BoP transactions, reflects the domestic economy’s set of
international accounts.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
1. India’s external debt, at US$ 610.5 billion as of end-September 2022, grew by 1.3 per
cent (US$ 7.6 billion) over US$ 602.9 billion as of end-September 2021.
2. The long-term debt was lower at US$ 478.7 billion as of end-September 2022 than
US$ 498.1 billion a year ago with the share of long-term debt falling to 78.4 percent
from 82.8 percent during the same period.
3. The short-term debt at US$ 131.7 billion as of end-September 2022 was higher than
US$ 104.8 billion as of end-September 2021
a. 1 and 3 only
b. 2 and 3 only
c. 1 and 2 only
d. 1, 2 and 3 only
By: Vibhas Jha

1. As of end-September 2022, Sovereign External Debt (SED) amounted to US$ 124.5

billion, decreasing by 5.7 per cent over the level a year ago.
2. Non-SED, estimated at US$ 486.0 billion as of end-September 2022, posted a growth
of 3.2 per cent over the level a year ago.
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2
Answer
Ans1. c
Economic Survey 2022-23, Chapter 11, Page 312, Paragraph 11.1
Ans2. c
Ans3. b
Now, the Covid-19 pandemic is another shock to global growth performance, with economic
growth down to a negative of 3.8 per cent in 2020. The following two years saw inflation
rates rise to multi-decade highs, fuelled by global commodity and food price spikes. The
situation has been further amplified by the Russia-Ukraine conflict.
Ans4. c
Ans5. a
By: Vibhas Jha

Interest rates and prices of risk assets have been extremely volatile since April 2022,
reflecting heightened uncertainty about the economic and policy outlook, exacerbated by
low liquidity.
Ans6. c
Ans7. c
Ans8. c
Ans9. c
Ans10. c
● Global trade exhibited resilience in the first half (H1) of 2022, notwithstanding the
headwinds from the Russia-Ukraine conflict.
● Robust merchandise imports – emerging primarily from Europe, the United States,
and parts of the developing world supported the growth of merchandise trade in
H12022.
● This partially reflected pent-up demand relating to the legacy of the pandemic-driven
spending shift from services towards goods that were constrained earlier because of
the supply bottlenecks.
● Other factors contributing to the trend were the appreciation of the dollar in the case
of the United States, the relative dynamism of intra-regional trade in Europe, and
favourable terms-of-trade effects in some large emerging economies due to
elevated energy prices.
Ans11. d
By: Vibhas Jha

Ans12. c
Ans13. c
Ans14. a
The United Nations Conference on Trade and Development (UNCTAD), in its Global Trade
update of December 2022 has also noted that the ongoing trade slowdown is expected to
worsen for 2023 and further that while the outlook for global trade remains uncertain,
negative factors appear to outweigh positive trends.
Ans15. c
Ans16. d
Ans17. c
Ans18. c
Economic Survey 2022-23, Chapter 11, Page 317, Paragraph 11.12 & 11.13
Ans19. a
The USA remained the top export destination in April-November, 2022 followed by UAE
and the Netherlands. The Netherlands has displaced China from the 3rd spot as India's
exporting partner. India has diversified its export destinations over time.
Ans20. c
By: Vibhas Jha

Ans21. b
India’s Foreign Trade Policy (FTP) has, conventionally, been formulated for five years
at a time. The focus of the FTP has been to provide a framework of rules and procedures for
exports and imports and a set of incentives for promoting exports.
The latest FTP for 2015- 2020 is in vogue at present. To provide policy stability during the
pandemic period, the five year FTP 2015-20 was extended from 2020 to 2022. The policy has
been further extended till March 2023 on account of volatile global economic and
geopolitical situations and currency fluctuations
Ans22. a
NITI Aayog in partnership with the Institute of Competitiveness has prepared an
Export Preparedness Index to identify challenges and opportunities; enhance the
effectiveness of government policies; and encourage a facilitative regulatory framework. The
structure of the EPI includes 4 pillars –Policy; Business Ecosystem; Export Ecosystem;
Export Performance – and 11 sub-pillars –Export Promotion Policy; Institutional Framework;
Business Environment; Infrastructure; Transport Connectivity; Access to Finance; Export
Infrastructure; Trade Support; R&D Infrastructure; Export Diversification; and Growth
Orientation.
Ans23. c
A Vostro account is an account that a domestic bank holds for a foreign bank in the domestic
bank’s currency, i.e., Rupee. Such accounts enable domestic banks to provide international
banking services to their clients who have global banking needs.
Ans24. c
Ans25. c
Ans26. a
By: Vibhas Jha

● Krishi Udan Scheme was launched in August 2020 on international and national
routes to assist farmers in transporting agricultural products so that it improves their
value realisation.
● Krishi Udan 2.0 was launched in October 2021 enhancing the existing provisions,
mainly focusing on transporting perishable food products from the hilly areas,
NorthEastern states, and tribal areas.
Ans27.d
Economic Survey 2022-23, Chapter 11, Page 323, Paragraph 11.32, 11.33 & 11.34
Ans28. d
Ans29. c
Economic Survey 2022-23, Chapter 11, Page 327 & 328, Paragraph 11.37 & 11.38
Ans30. d
● Overall, the adverse global economic situation placed India’s BoP under pressure in
2022. While the impact of a sharp rise in oil prices was discernible in the widening of
the CAD, policy tightening by the US Fed and the strengthening of the US dollar led
to FPI outflows.
● As a result, as the net financial inflows fell short of the CAD, there was a depletion
of foreign exchange reserves on a BoP basis to the tune of US$ 25.8 billion in
H1FY23 in contrast to an accretion of US$ 63.1 billion in H1FY22.
Ans31. c
Ans32. c
Economic Survey 2022-23, Chapter 11, Page 333 & 334, Paragraph 11.44 & 11.46
By: Vibhas Jha

Ans33. c
Ans34. c
Ans35. c
Ans36. c
By: Vibhas Jha

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Quiz on [Economic Survey 2022-23, Chapter 11]

1. one an economic shock

Q2. According to Economic Survey 2022-23, consider the following statements:

Q3. According to Economic Survey 2022-23, consider the following statements:

1. The Covid-19 pandemic is another shock to global growth performance, with

By: Vibhas Jha

Q5. According to Economic Survey 2022-23, consider the following statements:

1. heightened uncertainty about the economic and policy outlook

By: Vibhas Jha

Q6. According to Economic Survey 2022-23, consider the following statements:

Q7. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

1. Trade is essential for developing countries to reap the benefit of increased

Q9. According to Economic Survey 2022-23, consider the following statements:

Q10. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q11. According to Economic Survey 2022-23, consider the following statements:

Q12. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q13. According to Economic Survey 2022-23, consider the following statements:

Q14. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q16. According to Economic Survey 2022-23, consider the following statements:

Q17. According to Economic Survey 2022-23, consider the following statements:

1. Significant strides in exports were registered in drugs and pharmaceutical, electronic

By: Vibhas Jha

Q18. According to Economic Survey 2022-23, consider the following statements:

Q19. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q20. According to Economic Survey 2022-23, consider the following statements:

Q21. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q23. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q25. According to Economic Survey 2022-23, consider the following:

1. RODTEP scheme seeks remission of Central, State and Local duties/taxes/levies at

Q26. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q27. According to Economic Survey 2022-23, consider the following statements:

1. India considers Regional Trading Arrangements (RTAs) as ‘building blocks’ towards

Q28. According to Economic Survey 2022-23, consider the following statements:

1. India-UAE Comprehensive Economic Partnership Agreement (CEPA) which was

By: Vibhas Jha

Q29. According to Economic Survey 2022-23, consider the following statements:

Q30. According to Economic Survey 2022-23, consider the following statement:

By: Vibhas Jha

Q32. According to Economic Survey 2022-23, consider the following statements

Q33. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

Q34. According to Economic Survey 2022-23, consider the following statements:

Q35. According to Economic Survey 2022-23, consider the following statements:

By: Vibhas Jha

1. As of end-September 2022, Sovereign External Debt (SED) amounted to US$ 124.5

By: Vibhas Jha

By: Vibhas Jha

By: Vibhas Jha

By: Vibhas Jha

By: Vibhas Jha

By: Vibhas Jha

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