This quiz works best with JavaScript enabled. Home > International > Bop > Balance Of Payments – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Balance Of Payments Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is not a part of the Current Account Balance A) Buying firms. B) Net Income Flows. C) Net Transfers. D) Balance of trade in goods and services. Show Answer Correct Answer: A) Buying firms. 2. Which of the following will be accounted for on the current account of an economy's balance of payments? A) Dividends from foreign investment. B) Sale of copyright. C) FDI. D) Short term flows of hot money. Show Answer Correct Answer: A) Dividends from foreign investment. 3. If the price of 1 US$ has fallen from Rs 56 to Rs 52, the Indian currency has: A) Depreciated. B) Appreciated. C) Devalued. D) None. Show Answer Correct Answer: B) Appreciated. 4. Bank of Baroda of India setting up an office in Trinidad and Tobago relates to which account? A) Current Account. B) Capital Account. C) Errors and Omission Section. D) Balance of Trade Section. Show Answer Correct Answer: B) Capital Account. 5. Japanese tourist visit Singapore and bought some Bee Chen Xiang BBQ. A) Credit entry in Current a/c (visible trade a/c). B) Credit entry in Current a/c (invisible trade a/c). C) Debit entry in Current a/c (visible trade a/c). D) Debit entry in Current account (invisible trade alc). Show Answer Correct Answer: B) Credit entry in Current a/c (invisible trade a/c). 6. The following items appear on the current account of the US balance payments, except for A) Dividends paid to foreign residents owning US shares. B) The sale of a hotel chain by an overseas conglomerate. C) A payment to farmers for wheat sold overseas. D) None of above. Show Answer Correct Answer: B) The sale of a hotel chain by an overseas conglomerate. 7. What would most likely cause Australia's balance of goods and services defict to become larger A) An increase in Australia's interest rate. B) An increase in interest rates of major trading partners. C) A decrease in Australia's inflation rate. D) Improved transport infrastructure. Show Answer Correct Answer: A) An increase in Australia's interest rate. 8. Capital account may be A) Private capital. B) Banking capital. C) Official capital. D) All of them. Show Answer Correct Answer: D) All of them. 9. A country's ..... are a summary of the country's transactions with other countries. A) Balance of Payments Accounts. B) Balance of Payments on the Current Account. C) Balance of Payments on Goods and Services. D) Balance of Payments on the Financial Account. Show Answer Correct Answer: A) Balance of Payments Accounts. 10. Which item is recorded in the financial account of a country's balance of payments? (Summer 2008) A) A a receipt of a gift of cash from abroad. B) B a receipt of a subsidy from abroad. C) C a receipt of interest of abroad. D) D a receipt of funds for long-term investment from abroad. Show Answer Correct Answer: D) D a receipt of funds for long-term investment from abroad. 11. In an open economy, when national income rises, other things being equal A) Total exports tend to fall. B) Total imports tend to fall. C) Total imports tend to rise. D) Imports and exports remain largely unchanged. Show Answer Correct Answer: C) Total imports tend to rise. 12. The ..... records international transactions. A) Balance of payments accounting system. B) International accounting standards. C) Gold standard procedure. D) ISO 9000 system. Show Answer Correct Answer: A) Balance of payments accounting system. 13. Final balance of payments of a country is: A) Always balanced. B) Always deficit. C) Always surplus. D) Fluctuates. Show Answer Correct Answer: A) Always balanced. 14. When receipts of foreign exchange are more than payments of foreign exchange, BOP is: A) Balanced. B) Surplus. C) Deficit. D) None of these. Show Answer Correct Answer: B) Surplus. 15. USA citizens send money to disaster relief fund in Sri Lanka. This will get recorded in the USA BoP as a, A) Financial ac outflow. B) Investment income outflow. C) Transfers outflows. D) Reserves. Show Answer Correct Answer: C) Transfers outflows. 16. A USA apparel company pays a German advertising firm to develop their next commercial. This will get recorded in the USA BoP ac as, A) Visible balance inflow. B) Visible balance outflow. C) Invisible balance inflow. D) Invisible balance outflow. Show Answer Correct Answer: D) Invisible balance outflow. 17. The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded as A) A goods account debit. B) A capital account credit. C) A credit on the net goods account. D) A debit on the income account. Show Answer Correct Answer: A) A goods account debit. 18. What is a devaluation in the value of a currency? A) A fall in its external value. B) A fall in its internal value. C) A rise in its external value. D) A rise in its internal value. Show Answer Correct Answer: B) A fall in its internal value. 19. Causes of BOP imbalance relates to A) Autonomous items. B) Accommodating items. C) Both a and b. D) Neither a nor b. Show Answer Correct Answer: A) Autonomous items. 20. If BOT is showing the deficit of rs 200crs and value of exports is 700crs, then the value of imports will be: A) Rs200crs. B) Rs 500crs. C) Rs 700crs. D) Rs900crs. Show Answer Correct Answer: D) Rs900crs. ← PreviousNext →Related QuizzesInternational QuizzesBalance Of Payments Quiz 1Balance Of Payments Quiz 2Balance Of Payments Quiz 3Balance Of Payments Quiz 4Balance Of Payments Quiz 6Balance Of Payments Quiz 7Balance Of Payments Quiz 8Balance Of Payments Quiz 9Balance Of Payments Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books