Economics Objective Questions and Answers, which are covered in this chapter, relate to the topic, Balance of Payment. Economics Objective Questions and Answers Test contains 10 questions. Answers to Economics MCQs are available after clicking on the answer.
1. ____ is a systematic record of all the economic transactions between one country and the rest of the world:
(a) Balance of Trade
(b) Balance of Transaction
(c) Budget
(d) Balance of payments
Answer
Answer: (d) Balance of payments
2. As per the IMF balance of payment manual, import-export of goods should be presented on:
(a) FOB basis
(b) FOR basis
(c) CIF basis
(d) All of these
Answer
Answer: (a) FOB basis
3. OECD stands for :
(a) Organization for export co-operation & development
(b) Organization for economic commission & development
(c) Organization for export commission & development
(d) Organization for economic co-operation & development
Answer
Answer: (d) Organization for economic co-operation & development
4. India has witnessed a surplus for the third successive year in which account of the balance of payment?
(a) Trade account of BOP
(b) Current account of BOP
(c) Both (a) and (b)
(d) None of these
Answer
Answer: (b) Current account of BOP
5. In India which authority takes the purview of import & export:
(a) EXIM
(b) RBI
(c) Ministry of Finance
(d) Ministry of commerce
Answer
Answer: (d) Ministry of commerce
Economics Objective Questions and Answers – Balance of Payment
6. Devaluation means:
(a) To reduce the value of the home currency in another currency
(b) To appreciate the value of the home currency
(c) To increase the value of the home currency in other currencies.
(a) To constant the value of the home currency.
Answer
Answer: (a) To reduce the value of the home currency in another currency
7. _______ is a systematic record of all transactions of a country in a year.
(a) Balance of payment
(b) Balance of Trade
(c) Current Account of Balance of Payment
(a) None.
Answer
Answer: (a) Balance of payment
8. The current account of Balance of Payment includes trade balance and _______.
(a) Settlement account
(b) Capital account
(c) Invisibles
(a) Errors and omissions.
Answer
Answer: (c) Invisibles
9. Balance of payment deficit can be removed through:
(a) Devaluation of currency
(b) Vigorous export promotion
(c) Import substitution
(d) all of the above
Answer
Answer: (d) all of the above
10. The difference between the value of a nation’s visible exports and visible imports is.
(a) Balance of trade.
(b) Balance of payments.
(c) Balance of Current Account.
(a) Balance of Capital Account.
Answer
Answer: (a) Balance of trade.