Economics Objective Questions and Answers – Chapter 6 – Balance of Payment

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 at the end of the last question.


1. ____ is a systematic record of all the economic transaction between one country and rest of the would:

(a)    Balance of Trade

(b)    Balance of Transaction

(c)     Budget

(d)    Balance of payments

2. As per 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

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

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

5. In India which authority takes the purview of import & export:

(a)    EXIM

(b)    RBI

(c)     Ministry of Finance

(a)    Ministry of commerce

6. Devaluation means:

(a)    To reduce the value of home currency in other currency

(b)    To appreciate the value of home currency

(c)     To increase the value of home currency in other currency.

(a)    To constant the value of home 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.

8. The current account of Balance of Payment includes trade balance and _______.

(a)    Settlement account

(b)    Capital account

(c)     Invisibles

(a)    Errors and omissions.

9. Balance of payment deficit can be removed through:

(a)    Devaluation of currency

(b)    Vigorous export promotion

(c)     Import substitution

(a)    All of the above.

10. The difference between the value of a nations visible exports and visible import is.

(a)    Balance of trade.

(b)    Balance of payments.

(c)     Balance of current Account.

(a)    Balance of Capital Account.


1. (d) Balance of payments

2. (a) FOB basis

3. (d) Organization for economic co-operation & development

4. (b) Current account of BOP

5. (d) Ministry of commerce

6. (a) To reduce the value of home currency in other currency

7. (a) Balance of payment

8. (c) Invisibles

9. (a) All of the above

10 (a) Balance of trade

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