CAT 2000 | Question: 149

Question

Answer the following question based on the information given 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 $1998$. 

China’s foreign equity inflows in $1998$ were $10$ times that into India. It can be concluded that

• A. China’s GDP in $1998$ was $40\%$ higher than that of India.
• B. China’s GDP in $1998$ was $70\%$ higher than that of India.
• C. China’s GDP in $1998$ was $50\%$ higher than that of India.
• D. No inference can be drawn about relative magnitudes of China’s and India’s GDPs

Comments

Option $C$ seems right.

---

To be  Precise is it 66.66%

Answer 1

 

 

option c

 

 

Answer 2

Did it roughly:

letting foreign equity inflows of china be forC and forI (shortcut)

GDPI=forI/0.72, GDPC=10forI/4.8. ,GDPI/GDPC=4.8/(10*0.72)=0.48/0.72=2/3, GDPC=3/2GDPI which means GDPC= 50% more of GDPI