Unseen Passage

For Class 4 to Class 12

Open Economy Macroeconomics MCQ Class 12 Economics

Question: Which of the following transactions are recorded in the current account of the balance of payments ?
a) Import and export of goods and services
b) Transfers from one country to the other
c) Both (a) and (b)
d) None of these 

Answer

C

Question: Which of the following items relate to BoP which :
a) Foreign investment
b) Loans
c) NRI remittance
d) All of these 

Answer

B

Question: If balance of trade is (-) Rs.600 crore and value of exports is rs.500 crore then the value of imports will be :
a) Rs.1,300 crore
b) Rs. 300 crore
c) Rs.1,100 crore
d) Rs. 1,200 crore 

Answer

C

Question: Spot market is that market where in :
a) Only spot or current transactions are handled
b) Foreign exchange transactions are meant for future delivery
c) Exchange rate is determined instantly
d) Both (a) and (c)

Answer

B

Question: If Rs. 150 ate required to buy $ 2, instead of Rs.100 earlier, then :
a) Domestic currency has depreciated
b) Domestic currency has appreciated
c) Rupee value of import bill will increase
d) Both (a) and (c)

Answer

B

Question: BoP is measured as :
a) Difference between visible items of exports and imports
b) Difference between invisible items of exports and imports
c) Difference between external and internal flow of gold
d) Difference between all receipts of foreign exchange and payments of foreign exchange 

Answer

B

Question: Balance of trade is measured as :
a) Difference between import and export goods
b) Difference between import and export services
c) Difference between import and export of capital
d) Difference between all export and all imports 

Answer

A

Question: Forward market is that market which :
a) Handled transactions of foreign exchange meant for future delivery
b) Handled current transactions
c) Handled current as well as future transactions
d) None of these 

Answer

A

Question: Disequilibrium in balance of payments means:
a) Surplus balance of payments
b) Deficit balance of payments
c) Both (a) and (b)
d) None of these 

Answer

C

Question: In which of the following categories are economic transactions of balance of trade recorded ?
a) Visible items
b) Invisible items
c) Capital transfers
d) All the above 

Answer

A

Question: The exchange rate at which demand for foreign currency becomes equal to its supply called
a) Equal rate of exchange
b) Unequal rate of exchange
c) Equilibrium rate
d) All of these 

Answer

C

Question: Autonomous items are related to those transactions which :
a) Are determined by motive of profit
b) Are not concerned with the equilibrium status of BoP
c) Both (a) and (b)
d) None of these 

Answer

C

Question: What is the relationship between supply of foreign exchange and exchange rate?
a) Inverse
b) Direct
c) One to one
d) No to relationship

Answer

B

Question: According to adjustable peg system (or Bretton Woods System ) of Exchange Rate :
a) Different currencies were pegged to one currency (US dollar)
b) US dollar was assigned gold value at a fixed price
c) Parity between two currencies was determined by the quantity of gold contained in them
d) All of these

Answer

B

Question: What is the relationship between demand for foreign exchange and exchange rate ?
a) Inverse
b) Direct
c) One to one
d) No to relationship 

Answer

A

Question: Accommodating items are those items of Bop which :
a) Are not determined by profit motive
b) Are conditioned by the positive or negative BoP status
c) Deal with capital transfers only
d) Both (a) and (b) 

Answer

D

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