This quiz works best with JavaScript enabled. Home > International > Bop > Balance Of Payments – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Balance Of Payments Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not included in the current account? A) Trade in goods. B) Transfer of ownership in fixed assets. C) Trade in services. D) Income. Show Answer Correct Answer: B) Transfer of ownership in fixed assets. 2. In which account are foreign direct investments included A) Financial account. B) Current account. C) Income account. D) Net capital transfer account. Show Answer Correct Answer: A) Financial account. 3. ..... involves transactions related to transfers of assets and liabilities in BoP account A) Balance of trade account. B) Current account. C) Unilateral transfer account. D) Capital account. Show Answer Correct Answer: D) Capital account. 4. Big Dave, a UK citizen, buys a villa in France. This would be registered on: A) The Balance of Trade in Goods. B) The Balance of Trade in Services. C) The Capital/Financial Account. D) Investment incomes. Show Answer Correct Answer: C) The Capital/Financial Account. 5. Foreign investor payments for the purchase of BHP-Billiton shares would be recorded in Australia's A) Financial account. B) Capital account. C) Goods section of the current account. D) Primary income section of the current account. Show Answer Correct Answer: A) Financial account. 6. India decides to spend more in maintaining its diplomats in the South Korea. A) Debit in Indian Capital a/c. B) Credit in Indian Current a/c. C) Debit in Indian Capital a/c. D) Debit in Indian Current a/c. Show Answer Correct Answer: D) Debit in Indian Current a/c. 7. Which of the following shows a balanced current account? 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: A) Export revenue = import spending. 8. BoP os measured as: A) Difference between visible items of exports and imports. B) Difference between invisible items of Exports and imports. C) Difference between external and internal flow of gold. D) Difference between all RECEIPTS of foreign exchange and payments of foreign exchange. Show Answer Correct Answer: D) Difference between all RECEIPTS of foreign exchange and payments of foreign exchange. 9. An Indian company located in India invests in a company located abroad. This transaction is entered in India's balance of payments account on: A) Credit side of current account. B) Debit side of current account. C) Credit side of capital account. D) Debit side of capital account. Show Answer Correct Answer: D) Debit side of capital account. 10. Accommodating transactions are A) Balanceing in nature. B) Below the line. C) Both a and b. D) Neither a nor b. Show Answer Correct Answer: C) Both a and b. 11. The Malaysian government buys a new Boeing 787 from the U.S. This transaction is recorded in the Malaysian A) Current account. B) Financial/capital account. C) Official reserves. D) None of above. Show Answer Correct Answer: A) Current account. 12. Accommodating items are those items of BOP which A) Are not determined by considerations of profit. B) Are considered by the positive or negative BOP status. C) Lead to increase or decrease in official reserves with RBI. D) All of these. Show Answer Correct Answer: D) All of these. 13. Disney purchases a new cruise ship from Italy. A) Current Account/Deficit. B) Financial Account/Deficit. C) Current Account/Surplus. D) Financial Account/Surplus. Show Answer Correct Answer: A) Current Account/Deficit. 14. All else equal, if Euro Area raises its interest A) The dollar depreciates and the US demand for euros increases. B) The US demand for euros increases. C) The Euro Area supply of euros increases. D) None of above. Show Answer Correct Answer: A) The dollar depreciates and the US demand for euros increases. 15. Calculate the US current account balance in $ bn:Balance of Trade in Goods:-$ 900Balance of Trade in Services:$ 200Net Primary Income:$ 190Net Secondary Income:-$ 110 A) -$ 700. B) $ 90. C) $ 1400. D) $ -620. Show Answer Correct Answer: D) $ -620. 16. Current transaction are of which nature? A) Flow. B) Stock. C) Both a and b. D) None of above. Show Answer Correct Answer: A) Flow. 17. Which of the following are NOT included in balance of trade? A) Exports of goods. B) Exports of services. C) Investments by local firms abroad. D) Imports of goods and services. Show Answer Correct Answer: C) Investments by local firms abroad. 18. The table shows information from a country's currentaccount of its balance of payments. What is the country's current account balance? A) + $ 1 billion. B) -$ 4 billion. C) -$ 7 billion. D) -$ 15 billion. Show Answer Correct Answer: D) -$ 15 billion. 19. Balance of payments of a country includes: A) Current account. B) Moentary account. C) Capital account. D) All of above. Show Answer Correct Answer: D) All of above. 20. Reducing tariffs during a period of high domestic inflation would cause the current account to: A) Improve and boost domestic employment. B) Worsen and increase foreign debt. C) Worsen and boost domestic employment. D) None of above. Show Answer Correct Answer: B) Worsen and increase foreign debt. ← 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 9Balance Of Payments Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books