COMPETENCY BASED QUESTIONS

India’s imports rose sharply due to a rise in global oil prices. Explain how this would affect India’s current account.
This question tests:

• Recall

• Data Interpretation

• Analytical thinking

• Concept classification

A newspaper reports that the rupee has appreciated against the dollar. What will be the likely effect on India’s exports and imports?
This question tests:

• Application

• Memorization

• Matching

• Calculation

Given the data below, identify if India has a BoP surplus or deficit.

Exports ₹ 60,000, Imports₹ 70,000, Foreign Investment Inflow₹ 15,000

This question tests:

• Calculation and Interpretation

• Concept understanding

• Definition based knowledge

• Diagram Labeling

Ravi travels abroad and exchanges ₹1,00,000 into USD. Identify which part of the BoP this transaction will be recorded under.
This question tests:

• Factual Recall

• Classification of transactions

• Definition writing

• Diagram drawing

Using the BoP concept, explain how an increase in foreign direct investment affects the Indian economy’s external position.
This question tests:

• Conceptual application and analysis

• Statistical interpretation

• Listing of components

• Problem-solving

Read the following passage:
"In 2022–23, India’s current account deficit widened to 2.7% of GDP due to rising imports of oil and gold. Meanwhile, the capital account remained stable owing to continued foreign investments."
Question: Based on the above information, explain how India's BoP was managed and suggest one policy measure to address the current account deficit.

• Source-Based Question

• Assertion-Reasoning Question

• Case-Based Question

• Data Interpretation Question

A case describes a scenario where India experiences a fall in the value of the rupee due to high import bills and lower export earnings. Students are asked to analyze the impact on the forex market and suggest RBI intervention tools.
Identify the CBQ type:

• Case-Based

• Source- Based

• Assertion- Reasoning

• Data Interpretation

Observe the following forex rate chart and answer the question:

Jan ₹ 82.00

Feb ₹ 82.50

Mar ₹ 83.20

Question: What trend do you observe, and what economic consequences can arise from this?
This is a:

• Case-Based Question

• Assertion-Reasoning Question

• Source-Based Question

• Data Interpretation Question

Which of the following best illustrates a CBE approach in Economics?

• “Define balance of trade.”

• “List components of national income.”

• “A country sees a fall in exports. Analyze its impact on foreign exchange rate.”

• “State the meaning of inflation.”

What is the role of rubrics in evaluating competency-based answers?

• They help in marking MCQs

• They provide subjective interpretation

• They give clear, objective criteria for assessing skills

• They are not useful