Directions for the next 4 questions: Answer these questions based on the data presented in the figure below. FEI for a country in a year, is the ratio (expressed as a percentage) of its foreign equity inflows to its GDP. The following figure displays the FEIs for select Asian countries for the years 1997 and 1998.
It is known that China’s GDP in 1998 was 7% higher than its value in 1997, while India’s GDP drew 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?
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Foreign equity inflows to China were higher in 1998 than in 1997.
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Foreign equity inflows to China were lower in 1998 than in 1997.
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Foreign equity inflows to India were higher in 1998 than in 1997.
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Foreign equity inflows to South Korea decreased in 1998 relative to 1997.
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Foreign equity inflows to South Korea increased in 1998 relative to 1997,
The given values in the graph are ratio of FEI to GDP un %. So if entire value increase we can conculde that there can be increase in numerator and decrease in value of denominator and if entire value decrease we can conculde that there can be decrease in numerator and increase in value of denominator. hence only options 2 and 5 comply to these .
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