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CAT 2000 — DILR Question 18

Bar GraphsEasy
Passage / Data

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 grew 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?

  1. Foreign equity inflows to China were higher in 1998 than in 1997.
  2. Foreign equity inflows to China were lower in 1998 than in 1997.
  3. Foreign equity inflows to India were higher in 1998 than in 1997.
  4. Foreign equity inflows to South Korea decreased in 1998 relative to 1997.
  5. Foreign equity inflows to South Korea increased in 1998 relative to 1997.

Answer & solution

  • A

    I, III & IV

  • B

    II, III & IV

  • C

    I, III & V

  • II & V

Solution

Let us assume that the GDP of India, China and South Korea in 1997 is 100.

​​​​​​​

∴ From the table above we can figure out that only statement II and V are true.

Hence, option (d).

CAT 2000 DILR Q18: It is known that China’s GDP in 1998 was 7% higher than its value in 1997, while India's GDP grew by 2% — Solution | TheCATExam