Please refer to Chapter 12 Open Economy Macroeconomics MCQ Class 12 Economics with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 12 Economics. Students should refer to MCQ Questions for Class 12 Economics with Answers to score more marks in Grade 12 Economics exams. Students should read the chapter Open Economy Macroeconomics and then attempt the following objective questions.

MCQ Questions Class 12 Economics Chapter 12 Open Economy Macroeconomics

The Open Economy Macroeconomics MCQ Class 12 Economics provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

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 

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

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 

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)

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)

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 

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 

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 

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 

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 

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 

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 

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

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

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 

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) 

We hope you liked the above Open Economy Macroeconomics MCQ Class 12 Economics. In case you have any questions please put them in the comments box below and our teachers will provide you a response.