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 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.


 

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