CSEET international finance multiple choice questions - current affairs

CSEET Current Affairs Multiple Choice Questions (MCQs) on International Finance (2024–2025) with answers and brief facts

1. Which country recently became the largest foreign investor in India in FY 2024–25?

A) USA

B) Singapore

C) Mauritius

D) UAE

Answer: B) Singapore

FACT: : Singapore continued to be the top source of FDI inflows into India due to strong fintech and startup investments.

2. The IMF’s World Economic Outlook (April 2025) projected India’s growth rate for FY 2025 at around:

A) 5.5%

B) 6.2%

C) 6.8%

D) 7.0%

Answer:C) 6.8%

FACT: : India remains the fastest-growing major economy globally per IMF projections.

3. In 2024, India joined discussions for the BRICS Contingent Reserve Arrangement (CRA) to:

A) Provide humanitarian aid

B) Support balance-of-payment crises

C) Fund infrastructure projects

D) Promote tourism

Answer:B) Support balance-of-payment crises

FACT: : The CRA is designed as a liquidity safety net among BRICS nations.

4. Which country hosted the 2024 G20 Finance Ministers and Central Bank Governors Meeting?

A) Brazil

B) India

C) Indonesia

D) Saudi Arabia

Answer:A) Brazil

FACT: : Brazil is the G20 President for 2024; the finance track meetings were held in São Paulo.

5. The Asian Development Bank (ADB) approved a $400 million loan to India (2024) for:

A) Rural electrification

B) Climate-resilient infrastructure

C) Urban housing projects

D) MSME financing

Answer:B) Climate-resilient infrastructure

FACT: : The project focuses on sustainable and green urban infrastructure.

6. The World Bank’s Ease of Doing Business Report has been replaced by:

A) Global Finance Index

B) Business Readiness Report

C) Business Enabling Environment (BEE) Report

D) Global Competitiveness Report

Answer:C) Business Enabling Environment (BEE) Report

FACT: : The World Bank introduced BEE as a new global benchmarking tool.

7. The exchange rate system followed by India is:

A) Fixed

B) Floating

C) Managed floating

D) Pegged to USD

Answer:C) Managed floating

FACT: : India allows market determination with RBI intervention to curb volatility.

8. The Foreign Exchange Management Act (FEMA) was enacted in which year?

A) 1991

B) 1999

C) 2002

D) 2005

Answer:B) 1999

FACT: : FEMA replaced FERA to facilitate external trade and payments.

9. Which international body sets global banking norms like Basel III?

A) IMF

B) World Bank

C) BIS (Bank for International Settlements)

D) WTO

Answer:C) BIS (Bank for International Settlements)

FACT: : The Basel Committee under BIS develops regulatory standards for banks.

10. The SDR (Special Drawing Rights) is an international reserve asset created by:

A) World Bank

B) IMF

C) ADB

D) OECD

Answer:B) IMF

FACT: : SDRs supplement member countries’ official reserves.

11. In 2025, India and Japan renewed their Bilateral Swap Arrangement (BSA) worth:

A) $25 billion

B) $50 billion

C) $75 billion

D) $100 billion

Answer:B) $50 billion

FACT: : The BSA aims to strengthen financial cooperation and liquidity support.

12. The BRICS New Development Bank (NDB) is headquartered in:

A) Moscow

B) Shanghai

C) New Delhi

D) Johannesburg

Answer:B) Shanghai

FACT: : The NDB supports infrastructure and sustainable development projects.

13. Which global financial institution provides loans for balance-of-payment support to countries in crisis?

A) ADB

B) IMF

C) World Bank

D) WTO

Answer:B) IMF

FACT: : The IMF offers emergency financing during currency and BoP crises.

14. India’s External Debt-to-GDP ratio (2024) stood approximately at:

A) 12%

B) 18%

C) 20%

D) 25%

Answer:B) 18%

FACT: : India’s external debt remains sustainable, with major share being long-term.

15. The Asian Infrastructure Investment Bank (AIIB) was established to fund:

A) Renewable energy projects

B) Asian trade routes

C) Infrastructure and connectivity in Asia

D) Humanitarian aid

Answer:C) Infrastructure and connectivity in Asia

FACT: : AIIB’s focus is on sustainable infrastructure development across member nations.