This quiz works best with JavaScript enabled. Home > International > Bop > Balance Of Payments – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Balance Of Payments Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Balance of trade is a part of: A) Official reserve account. B) Current account BoP. C) Capital Account BoP. D) None of these. Show Answer Correct Answer: B) Current account BoP. 2. Leroy Jenkins buys stock in a Japanese video game company. This transaction would be recorded on the US balance of payments as A) Current account. B) Financial/capital account. C) Official reserves. D) None of above. Show Answer Correct Answer: B) Financial/capital account. 3. The purchase by foreigners of shares in Australian businesses is know as A) The institutional loans. B) Debt finance. C) Portfolio investment. D) Direct investment. Show Answer Correct Answer: A) The institutional loans. 4. Japanese tourist visit S'pore and bought some Bee Chen Xiang BBQ pork. 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). 5. The purchase of an overseas company by an Australian firm. A) Credit entry in Current a/c. B) Debit entry in Current a/c. C) Credit entry in Capital & Financial a/c. D) Debit entry in Capital & Financial a/c. Show Answer Correct Answer: D) Debit entry in Capital & Financial a/c. 6. Dirty floating is related to: A) Fixed System of exchange rate. B) Flexible system of exchange rate. C) Bathe a and b. D) None of these. Show Answer Correct Answer: B) Flexible system of exchange rate. 7. Which of these lead to a credit in the BOP A) Import of goods. B) Import of services. C) Export of goods. D) Unilateral transfer made to resident of another country. Show Answer Correct Answer: C) Export of goods. 8. Capital inflow will be increased by A) A rise in the exchange rate. B) A rise in domestic interst rates. C) A fall in the current account deficit. D) All of the above. Show Answer Correct Answer: A) A rise in the exchange rate. 9. Which of the following is FALSE concerning trade? A) Trade balance is equal to exports-imports. B) Trade balance can result in a surplus. C) Trade surplus in the U.S. started in 1975. D) Trade balance can result in a deficit. Show Answer Correct Answer: C) Trade surplus in the U.S. started in 1975. 10. Which of the following items related to BOP on capital account? A) Foreign investment. B) Loans. C) NRI remittances. D) All of these. Show Answer Correct Answer: D) All of these. 11. Which of the following shows a current account deficit? A) Export revenue = import spending. B) Export revenue is greater than import spending. C) Export revenue is less than import spending. D) None of above. Show Answer Correct Answer: C) Export revenue is less than import spending. 12. The ..... records the purchases and sales of assets between residents of one country and those of another country. A) Current account. B) Capital account. C) Debt account. D) Official reserves account. Show Answer Correct Answer: B) Capital account. 13. Imports into the UK are likely to rise as a result of A) Rising UK national income. B) UK prices rising more slowly than prices in other countries. C) Households saving more of their income. D) The external value of Sterling decreases. Show Answer Correct Answer: A) Rising UK national income. 14. Balance of Trade is the part of: A) Current account BOP. B) Capital account BOP. C) Official reserve account. D) None of these. Show Answer Correct Answer: A) Current account BOP. 15. A Chinese firm export goods to S'pore A) Credit entry in Current a/c (Invisible trade a/c). B) A debit entry in Current a/c (Visible trade a/c). C) Credit entry in Capital a/c. D) Debit entry in Capital a/c. Show Answer Correct Answer: B) A debit entry in Current a/c (Visible trade a/c). 16. Balance of Payments is a ..... concept. A) Stock. B) Flow. C) Flow as well as stock. D) Neither Flow nor stock. Show Answer Correct Answer: B) Flow. 17. The account that tracks the flow of currency and other monetary assets used to purchase financial and physical assets A) Current Account. B) Capital Account. C) Errors and Omission Section. D) Balance of Trade Section. Show Answer Correct Answer: B) Capital Account. 18. Which of the following is a form of asset included in the official reserves account? A) Government bond. B) Inconvertible currencies. C) Special drawing rights. D) Reserve positions at the WTO. Show Answer Correct Answer: C) Special drawing rights. 19. The rate which is determined by the government is known as A) Flexible exchange rate. B) Fixed exchange rate. C) Floating exchange rate. D) None of these. Show Answer Correct Answer: B) Fixed exchange rate. 20. Balance of Trade refers to balance of exports and imports of: A) Visible items. B) Invisible items. C) Both. D) None. Show Answer Correct Answer: A) Visible items. ← 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 8Balance Of Payments Quiz 9Balance Of Payments Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books