Balance of Payments Crisis — Prelims Questions

Consider the following statements about India's Balance of Payments Crisis of 1991: 1. Foreign exchange reserves fell to $1.2 billion, sufficient for only 15 days of imports 2. India pledged 67 tonnes of gold to international banks 3. The crisis was triggered solely by the Gulf War 4. IMF provided assistance without any conditionalities Which of the statements given above are correct?

Which of the following was NOT a direct consequence of India's 1991 Balance of Payments Crisis?

The 1991 Balance of Payments Crisis led to India seeking assistance from international financial institutions. In this context, consider the following: 1. IMF provided Stand-By Arrangement of $2.2 billion 2. World Bank provided structural adjustment loans of $3 billion 3. Asian Development Bank was the primary source of emergency funding 4. No conditionalities were attached to international assistance Which of the above statements are correct?

Consider the following factors that contributed to India's 1991 BoP Crisis: 1. Gulf War leading to higher oil prices 2. Reduction in remittances from Gulf countries 3. Harshad Mehta securities scam 4. Assassination of Rajiv Gandhi 5. Excessive fiscal deficits in the 1980s How many of the above factors directly contributed to the crisis?

Which of the following best describes the immediate policy response to address India's 1991 Balance of Payments Crisis?