✅ Answer: A) 1 and 2 onlyStatements 1 and 2 are correct. BoP includes current account (goods, services, income, transfers) and capital account (FDI, FPI, loans). Remittances are recorded in the current account (secondary income). Statement 3 is incorrect — FDI is recorded in the capital account, not current account.

✅ Answer: B) General Agreement on Trade in ServicesGATS (General Agreement on Trade in Services) is a WTO agreement covering trade in services — banking, IT, education, healthcare, tourism. India benefits greatly from GATS as India is a major exporter of IT services (~$200 billion/year) and wants further liberalisation of Mode 4 (movement of professionals).

✅ Answer: B) K.V. KamathK.V. Kamath (former ICICI Bank Chairman) was the first President of the New Development Bank (NDB) of BRICS (2015-2020). NDB is headquartered in Shanghai, China. It was established with initial capital of $50 billion to fund infrastructure and sustainable development in BRICS countries.

✅ Answer: A) USAUSA is India’s largest export destination. India exports IT services, pharmaceuticals, gems & jewellery, and engineering goods to USA. China is India’s largest import source (electronics, machinery, chemicals). India-USA bilateral trade is ~$190 billion/year.

✅ Answer: B)Dumping is exporting goods at prices below the cost of production or below the domestic price — to capture foreign markets and destroy local competition. WTO’s Anti-Dumping Agreement allows countries to impose anti-dumping duties to counter this practice. India frequently imposes anti-dumping duties on Chinese goods.

✅ Answer: C) 2017India became a full member of the Shanghai Cooperation Organisation (SCO) in 2017 at the Astana Summit. SCO is a Eurasian political, economic, and security organisation. India joined along with Pakistan. SCO members include China, Russia, India, Pakistan, and Central Asian states.

✅ Answer: B)MFN (Most Favoured Nation) principle means treating all WTO member countries equally — if you give a trade benefit to one country, you must give the same benefit to all WTO members. It is a cornerstone of WTO’s non-discrimination principle. India revoked Pakistan’s MFN status in 2019 after Pulwama attack.

✅ Answer: C) Managed float (dirty float)India follows a managed float (dirty float) exchange rate system — the rupee’s value is primarily determined by market forces, but RBI intervenes to prevent excessive volatility. India moved from a fixed exchange rate to managed float after the 1991 reforms. RBI buys/sells dollars to manage the rupee.

✅ Answer: B) UAEIndia signed a CEPA (Comprehensive Economic Partnership Agreement) with UAE in February 2022 — India’s first FTA in a decade. The agreement covers goods, services, and investment. India-UAE bilateral trade is ~$85 billion/year. India also signed an Economic Cooperation and Trade Agreement (ECTA) with Australia in 2022.

✅ Answer: C) ~$100 billionIndia received ~$100 billion in remittances in 2022 — the world’s largest, surpassing China and Mexico. Remittances are sent by the Indian diaspora (especially from USA, UAE, Saudi Arabia, UK). Remittances help finance India’s current account deficit and are a major source of foreign exchange.