This quiz works best with JavaScript enabled. Home > International > Bop > Balance Of Payments – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Balance Of Payments Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the balance of payments, interest payments are included in A) Services. B) Net transfers. C) Merchanidse trade. D) Capital account. Show Answer Correct Answer: A) Services. 2. Due to the deprication of foreign currency, the supply of foreign currency in domestic economy will A) Increase. B) Not change. C) Wither increase or decrease. D) Decrease. Show Answer Correct Answer: D) Decrease. 3. If India export goods worth rs 20 crs and imports goods worth rs 30 crs.it will have a A) Surplus of rs10 crs in balance of trade. B) Deficit of rs10 crs in balance of trade. C) Deficit of rs50 crs in balance of trade. D) None of above. Show Answer Correct Answer: B) Deficit of rs10 crs in balance of trade. 4. Other things remaining unchanged, when in a country, the price of foreign currency rises, national income is A) Likely to rise. B) Likly to fall. C) Likely to rise and fall both. D) Not affected. Show Answer Correct Answer: B) Likly to fall. 5. Current account may be A) Visible items. B) Invisible items. C) Unilateral transactions. D) All of above. Show Answer Correct Answer: D) All of above. 6. Payments of dividends by a foreign firms to Australian shareholders are recorded in Australia's BoP as: A) Credit entry in Secondary Income Account. B) Credit entry in Primary Income Account. C) Credit Entry in the Financial Account. D) This transaction would not be recorded in the BoP. Show Answer Correct Answer: B) Credit entry in Primary Income Account. 7. Which of the following items related to balance of payments on capital account? A) Foreign investment. B) Loans. C) NRI remmittance. D) Allof these. Show Answer Correct Answer: D) Allof these. 8. Invisibles balance refers to A) Exports-imports. B) Trade balance + balance of non factor services. C) Balance of non factor services + balance of income + balance of transfers. D) Exports-imports + balance of factor services. Show Answer Correct Answer: C) Balance of non factor services + balance of income + balance of transfers. 9. Which one of the following items is an intangible item in balance of payments statement? A) Export of food grain. B) Import of crude oil. C) Banking services provided in other countries. D) Import of steel by steel industry. Show Answer Correct Answer: C) Banking services provided in other countries. 10. The ..... between two countries' currencies is the nominal exchange rate at which a given basket of goods and services would cost the same amount in each country. A) Purchasing Power Parity. B) CPI Currency Rate. C) Nominal Exchange Rate. D) Aggregate Exchange Rate. Show Answer Correct Answer: A) Purchasing Power Parity. 11. Gifts, donations and foreign aid are all classed as: A) Export and import. B) Non factor and factor income. C) Transfer payments. D) All of these. Show Answer Correct Answer: C) Transfer payments. 12. A St. Lucian receive dividends from his Microsoft shares purchased in the USA. This relates to which account? A) Current Account. B) Capital Account. C) Errors and Omission Section. D) Official Reserve Account. Show Answer Correct Answer: A) Current Account. 13. Russian immigrant working in the USA send money to her family in Russia. This will get recorded in the USA BoP ac as, A) Investment income outflow. B) Invisible balance outflow. C) Transfers outflow. D) Financial ac outflow. Show Answer Correct Answer: A) Investment income outflow. 14. If the value of visible exports exceeds the value of invisible imports the balance relates to A) Current account of BOP. B) Capital account of BOP. C) Balance of trade. D) None of these. Show Answer Correct Answer: C) Balance of trade. 15. What determines the value of fixed exchange rate but not afreely floating exchange rate: A) Export revenue and import expenditure. B) Foreign direct investment. C) Government intervention in the foreign exchange market. D) Speculation. Show Answer Correct Answer: C) Government intervention in the foreign exchange market. 16. The purchase of an overseas company by a British firm. A) Credit in British Current a/c. B) Debit in British Current a/c. C) Credit in British Capital a/c. D) Debit in British Capital a/c. Show Answer Correct Answer: D) Debit in British Capital a/c. 17. In 2010 the Brazilian central bank raised interest rates. What is likely to happen in the Brazilian economy? A) The exchange rate will depreciate. B) The exchange rate will appreciate. C) The rate of inflation will accelerate. D) The rate of inflation will become negative. Show Answer Correct Answer: B) The exchange rate will appreciate. 18. Balance of Trade is calculated as: A) Exports-imports. B) Exports of visibles-import of visibles. C) Exports of goods and services-import of goods and services. D) None of above. Show Answer Correct Answer: C) Exports of goods and services-import of goods and services. 19. Balance of trade is measure as A) Difference between import and export of goods. B) Difference between import and export of services. C) Difference between import and export of capital. D) Difference between all exports and all imports. Show Answer Correct Answer: A) Difference between import and export of goods. 20. Which items are excluded in BOT, but included in BOP? A) Visible items. B) Invisible items. C) Private capital. D) Both Invisible items and Private capital. Show Answer Correct Answer: D) Both Invisible items and Private capital. ← PreviousNext →Related QuizzesInternational QuizzesBalance Of Payments Quiz 1Balance Of Payments Quiz 2Balance Of Payments Quiz 3Balance Of Payments Quiz 4Balance Of Payments Quiz 5Balance Of Payments Quiz 6Balance Of Payments Quiz 7Balance Of Payments Quiz 8Balance Of Payments Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books