Question 1

Under direct control measures, the government aims at limiting

Accepted Answer

A) The volume of imports 
B) The volume of exports 
C) Both imports and exports 
D) None of the above 
A) The volume of imports 
B) The volume of exports 
C) Both imports and exports 
D) None of the above A

Question 2

Devaluation results in

Accepted Answer

A) Increase in domestic price of imports and decrease in foreign price of exports 
B) Increase in foreign price of exports and decrease in domestic price of imports 
C) Decrease in domestic price of imports and increase in foreign price of exports 
D) None of the above 
A) Increase in domestic price of imports and decrease in foreign price of exports 
B) Increase in foreign price of exports and decrease in domestic price of imports 
C) Decrease in domestic price of imports and increase in foreign price of exports 
D) None of the above A

Question 3

The equation Rf-Pf <0 denotes

Accepted Answer

A) Surplus in balance of payments 
B) Deficit in balance of payments 
C) Equilibrium in balance of payments 
D) None of the above 
A) Surplus in balance of payments 
B) Deficit in balance of payments 
C) Equilibrium in balance of payments 
D) None of the above B

Question 4

In the equation B=Rf-Pf, Pf represents

Accepted Answer

A) Payments made by foreigners 
B) Payments made to foreigners 
C) Payments made to residents of a country 
D) Payments made to exporters 
A) Payments made by foreigners 
B) Payments made to foreigners 
C) Payments made to residents of a country 
D) Payments made to exporters

Question 5

The difference between exports and imports of a country is its

Accepted Answer

A) Balance of visible trade 
B) Balance of invisible trade 
C) Balance of payments 
D) None of the above 
A) Balance of visible trade 
B) Balance of invisible trade 
C) Balance of payments 
D) None of the above

Question 6

In the equation Y=C+I+G+(X-M), G denotes

Accepted Answer

A) General expenditure 
B) Government expenditure 
C) Expenditure on gold 
D) Expenditure on goods 
A) General expenditure 
B) Government expenditure 
C) Expenditure on gold 
D) Expenditure on goods

Question 7

Exchange rate depreciation reduces

Accepted Answer

A) The value of home currency in relation to foreign currency 
B) The value of foreign currency in relation to a home currency 
C) Both the values of home currency and foreign currency 
D) None of the above 
A) The value of home currency in relation to foreign currency 
B) The value of foreign currency in relation to a home currency 
C) Both the values of home currency and foreign currency 
D) None of the above

Question 8

Given the foreign exchange rate and prices in a country, an increase in the value of exports causes an increase in

Accepted Answer

A) Expenditures 
B) Incomes 
C) Investments 
D) Employment 
A) Expenditures 
B) Incomes 
C) Investments 
D) Employment

Question 9

The expression (X-M) denotes

Accepted Answer

A) The balance of trade 
B) The balance of payments 
C) The domestic trade 
D) None of the above 
A) The balance of trade 
B) The balance of payments 
C) The domestic trade 
D) None of the above

Question 10

'twin deficits' refer to revenue deficit and

Accepted Answer

A) Capital deficit 
B) Capital account BoP deficit 
C) Current account BoP deficit 
D) None of the above 
A) Capital deficit 
B) Capital account BoP deficit 
C) Current account BoP deficit 
D) None of the above

Question 11

If export is less than import, there is a ….. in balance of trade.

Accepted Answer

A) Surplus 
B) Deficit 
C) Favourable 
D) Balance 
A) Surplus 
B) Deficit 
C) Favourable 
D) Balance

Question 12

Undervaluation of currency encourages

Accepted Answer

A) Imports 
B) Exports 
C) Investments 
D) None of the above 
A) Imports 
B) Exports 
C) Investments 
D) None of the above

Question 13

The category that do not includes in the balance of payments account is/are

Accepted Answer

A) The current account 
B) The capital account 
C) The official settlements account 
D) The savings account 
A) The current account 
B) The capital account 
C) The official settlements account 
D) The savings account

Question 14

Overvaluation of domestic currency makes

Accepted Answer

A) Foreign goods cheaper and exports dearer in foreign countries 
B) Foreign goods dearer and exports cheaper in foreign countries 
C) Domestic goods cheaper and foreign goods dearer 
D) None of the above 
A) Foreign goods cheaper and exports dearer in foreign countries 
B) Foreign goods dearer and exports cheaper in foreign countries 
C) Domestic goods cheaper and foreign goods dearer 
D) None of the above

Question 15

Devaluation encourage

Accepted Answer

A) Exports 
B) Imports 
C) Both exports and imports 
D) None of the above 
A) Exports 
B) Imports 
C) Both exports and imports 
D) None of the above

Question 16

A country which gives loans and grants on a large scale to other countries has

Accepted Answer

A) A surplus in its BOP on capital account 
B) A deficit in its BOP on capital account 
C) A surplus in its BOP on current account 
D) A deficit in its BOP on its current account 
A) A surplus in its BOP on capital account 
B) A deficit in its BOP on capital account 
C) A surplus in its BOP on current account 
D) A deficit in its BOP on its current account

Question 17

Imports in balance of payments account are shown as a

Accepted Answer

A) Negative item 
B) Positive item 
C) Invalid item 
D) None of the above 
A) Negative item 
B) Positive item 
C) Invalid item 
D) None of the above

Question 18

Measurement of deficit or surplus in the balance of payments in in international transaction is in a given year is

Accepted Answer

A) Balance of payments 
B) Balance of trade 
C) Transfer payments to foreigners 
D) None of the above 
A) Balance of payments 
B) Balance of trade 
C) Transfer payments to foreigners 
D) None of the above

Question 19

If the difference between exports and imports is zero

Accepted Answer

A) Balance of trade balances 
B) Balance of payments balances 
C) Capital account equals current account 
D) None of the above 
A) Balance of trade balances 
B) Balance of payments balances 
C) Capital account equals current account 
D) None of the above

Question 20

Lending to foreign countries represents

Accepted Answer

A) Capital inflows 
B) Capital outflows 
C) Services outflows 
D) Services inflows 
A) Capital inflows 
B) Capital outflows 
C) Services outflows 
D) Services inflows

Under direct control measures, the government aims at limiting

Devaluation results in

The equation Rf-Pf <0 denotes

In the equation B=Rf-Pf, Pf represents

The difference between exports and imports of a country is its

In the equation Y=C+I+G+(X-M), G denotes

Exchange rate depreciation reduces

Given the foreign exchange rate and prices in a country, an increase in the value of exports causes an increase in

The expression (X-M) denotes

'twin deficits' refer to revenue deficit and

If export is less than import, there is a ….. in balance of trade.

Undervaluation of currency encourages

The category that do not includes in the balance of payments account is/are

Overvaluation of domestic currency makes

Devaluation encourage

A country which gives loans and grants on a large scale to other countries has

Imports in balance of payments account are shown as a

Measurement of deficit or surplus in the balance of payments in in international transaction is in a given year is

If the difference between exports and imports is zero

Lending to foreign countries represents

Theories and Concepts in International Trade

Understanding International Trade Theories and Terms

Understanding Terms of Trade and Trade Gains Theory

Understanding Tariffs and Trade Policies

Understanding Tariffs and Quotas in International Trade

Indias Balance of Payments and Foreign Trade: Part A

Indias Balance of Payments and Foreign Trade: Part B

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Exam 6: International Finance and Balance of Payments

Under direct control measures, the government aims at limiting

Devaluation results in

The equation Rf-Pf <0 denotes

In the equation B=Rf-Pf, Pf represents

The difference between exports and imports of a country is its

In the equation Y=C+I+G+(X-M), G denotes

Exchange rate depreciation reduces

Given the foreign exchange rate and prices in a country, an increase in the value of exports causes an increase in

The expression (X-M) denotes

'twin deficits' refer to revenue deficit and

If export is less than import, there is a ….. in balance of trade.

Undervaluation of currency encourages

The category that do not includes in the balance of payments account is/are

Overvaluation of domestic currency makes

Devaluation encourage

A country which gives loans and grants on a large scale to other countries has

Imports in balance of payments account are shown as a

Measurement of deficit or surplus in the balance of payments in in international transaction is in a given year is

If the difference between exports and imports is zero

Lending to foreign countries represents

Theories and Concepts in International Trade

Understanding International Trade Theories and Terms

Understanding Terms of Trade and Trade Gains Theory

Understanding Tariffs and Trade Policies

Understanding Tariffs and Quotas in International Trade

Indias Balance of Payments and Foreign Trade: Part A

Indias Balance of Payments and Foreign Trade: Part B

Filters