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Balance Of Payments Quiz 1 (25 MCQs)

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1. Qhat is the relationship between demand for foreign exchange and exchange rate?
2. If balance of Trade is (-) 600 crore and the value of exports is 500 crore. then what will be the value of imports.
3. The purchase of an overseas company by a Singapore firm.
4. Payments of profits by a Japanese-owned firm in Australia to its parent company in Tokyo.
5. A country is running a persistent trade deficit. The most likely effect of this is to
6. The Balance of Account should always equal
7. Loans raised overseas which finance corporate takeovers in Australia are:
8. Exports = rupees 1000 lakh imports = 16 50 lakh, balance of trade shows
9. Mr. Leroy Jenkins buys shares in a Japanese video game company. This transaction would be recorded in the,
10. USA tourist purchases cheese in France as a souvenir. How would this transaction be recorded in the US BoP?
11. An increase value of a currency in a free floating exchange system
12. Which policy would be most likely to reduce a balance of payments current account deficit? (Winter 2005)
13. _____ is the cross-border purchase of assets that are then managed in a way that hides the movement of money and its ownership.
14. The Law of Comparative Advantage states that countries should specialise in the production of goods and services that they have _____ than their trading partners.
15. Which of the following actions by local consumers can negatively impact their country's BOP?
16. Balance of trade is Rs (-) 150crs and value of exports are Rs 350 crs.In this case value of imports will be
17. Unilateral transfers are
18. Which of the following Functions are performed in a foreign exchange market?
19. As currency appreciates a trade surplus
20. _____ is a situation when 'managed floating' is exercised by the central bank.
21. A company located in India receives a loan from a company located abroad. How is this transaction recorded in India's balance of payments account?
22. Payments of dividends by a foreign firms to Belgians.
23. How is spending by tourists visiting the UK recorded in the BoP?
24. When currency depreciates imports become more
25. The purchase and sale of stocks, bonds, real estate and businesses relate to which account?
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