Comprehension
The following graph gives the data about Foreign Equity Inflow (FEI) for the four countries for two years 97 and 98. FEI is taken as the ratio of foreign equity inflow to the country’s GDP, which is expressed as percentage in the graph. For answering you can use the data from the preceding questions.
Question: 1
The country with the largest %age change in FEI in 1998 relative to its FEI in 1997, is:
The country with the largest %age change in FEI in 1998 relative to its FEI in 1997, is:
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When comparing percentage changes, use $\frac{\text{new} - \text{old}}{\text{old}} \times 100%$.
Updated On: Aug 5, 2025
- India
- China
- Malaysia
- Thailand
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The Correct Option is A
Solution and Explanation
From the graph:
India: $0.72 \to 1.71$, change $\approx 137.5%$ increase.
China: $4.80 \to 5.96$, change $\approx 24.2%$ increase.
Malaysia: $9.92 \to 10.97$, change $\approx 10.6%$ increase.
Thailand: $5.09 \to 5.82$, change $\approx 14.3%$ increase.
The largest percentage change is for India.
\[
\boxed{\text{India}}
\]
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Question: 2
Based on the data provided, it can be concluded that:
Based on the data provided, it can be concluded that:
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Look at the bar heights in both years to determine increases or decreases.
Updated On: Aug 5, 2025
- Absolute value of foreign equity inflows in 1998 was higher than that in 1997 for both Thailand and South Korea.
- Absolute value of foreign equity inflows was higher in 1998 for Thailand and lower for China than the corresponding values in 1997.
- Absolute value of foreign equity inflows was lower in 1998 for both India and China than the corresponding values in 1997.
- None of the above can be inferred.
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The Correct Option is A
Solution and Explanation
From the graph:
Thailand: $5.09 \to 5.82$ (increase).
S Korea: $2.16 \to 2.50$ (increase).
Thus, option (1) is correct.
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Question: 3
It is known that China’s GDP in 1998 was 7% higher than its value in 1997 while India’s GDP grew by 2% during the same period. The GDP of South Korea on the other hand, fell by 5% which of the following statements is/are true?
I. Foreign equity inflows to China were higher in 1998 than in 1997.
II.Foreign equity inflows to China were lesser in 1998 than in 1997.
III.Foreign equity inflows to India were higher in 1998 than in 1997.
IV.Foreign equity inflows to South Korea decreased in 1998 relative to 1997.
V.Foreign equity inflows to South Korea increased in 1998 relative to 1997.
It is known that China’s GDP in 1998 was 7% higher than its value in 1997 while India’s GDP grew by 2% during the same period. The GDP of South Korea on the other hand, fell by 5% which of the following statements is/are true?
I. Foreign equity inflows to China were higher in 1998 than in 1997.
II.Foreign equity inflows to China were lesser in 1998 than in 1997.
III.Foreign equity inflows to India were higher in 1998 than in 1997.
IV.Foreign equity inflows to South Korea decreased in 1998 relative to 1997.
V.Foreign equity inflows to South Korea increased in 1998 relative to 1997.
I. Foreign equity inflows to China were higher in 1998 than in 1997.
II.Foreign equity inflows to China were lesser in 1998 than in 1997.
III.Foreign equity inflows to India were higher in 1998 than in 1997.
IV.Foreign equity inflows to South Korea decreased in 1998 relative to 1997.
V.Foreign equity inflows to South Korea increased in 1998 relative to 1997.
Show Hint
Absolute FEI = (FEI ratio) $\times$ GDP. Consider GDP change to decide increase or decrease.
Updated On: Aug 5, 2025
- I, III \& IV
- II, III \& IV
- I, III \& V
- II \& V
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The Correct Option is A
Solution and Explanation
China: FEI ratio increased from $4.80$ to $5.96$, GDP rose, so absolute FEI increased $\Rightarrow$ I true, II false.
India: FEI ratio increased from $0.72$ to $1.71$, GDP rose, so absolute FEI increased $\Rightarrow$ III true.
S Korea: FEI ratio increased from $2.16$ to $2.50$, GDP fell, so absolute FEI decreased $\Rightarrow$ IV true, V false.
Thus, I, III, IV are correct.
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Question: 4
China’s foreign equity inflows in 1998 were 10 times those into India. What can be concluded?
China’s foreign equity inflows in 1998 were 10 times those into India. What can be concluded?
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When FEI ratios and absolute amounts are related, use simple equations to relate GDPs.
Updated On: Aug 5, 2025
- China’s GDP in 1998 was $40%$ higher than that of India.
- China’s GDP in 1998 was $70%$ higher than that of India.
- China’s GDP in 1998 was $50%$ higher than that of India.
- No inference can be drawn about relative magnitudes of GDPs.
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The Correct Option is C
Solution and Explanation
Let India’s GDP = $G_I$, China’s GDP = $G_C$.
Given:
\[
0.0596 G_C = 10 \times (0.0171 G_I) \Rightarrow G_C / G_I \approx 1.5
\]
Thus, China’s GDP was $50%$ higher than India’s in 1998.
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