Indian Polity & Governance·MCQ Practice

Remittances — MCQ Practice

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Version 1Updated 5 Mar 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1medium

Consider the following statements about remittances to India: 1. India is the largest recipient of remittances globally 2. Remittances are recorded under the capital account of Balance of Payments 3. The Gulf Cooperation Council countries are the largest source of remittances to India 4. Remittances create future repayment obligations like foreign debt Which of the statements given above are correct?

Q2easy

The Liberalized Remittance Scheme (LRS) allows resident Indians to remit money abroad. What is the current annual limit under LRS?

Q3medium

Which of the following best explains why remittances are considered more stable than Foreign Institutional Investment (FII) flows?

Q4medium

Consider the following statements about the impact of remittances on India's economy: 1. Remittances help reduce current account deficit 2. They contribute to financial inclusion in rural areas 3. Remittances have a multiplier effect on local economies 4. They are primarily used for productive investments Which of the statements given above are correct?

Q5easy

The term 'hawala' in the context of remittances refers to:

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