This quiz works best with JavaScript enabled. Home > International > Bop > Balance Of Payments – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Balance Of Payments Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It helps countries to meet deficit in balance of payments: A) IMF. B) WTO. C) World Bank. D) UNO. Show Answer Correct Answer: A) IMF. 2. Investments made by domestic firms of the country in another country are included where? A) In the current account. B) In the capital account. C) In the balance of trade section. D) None of the above. Show Answer Correct Answer: B) In the capital account. 3. B O P Impacts on Key Macroeconomic Rates A) Exchange rates. B) Unemployment rate. C) Interest rates. D) Inflation rates. Show Answer Correct Answer: B) Unemployment rate. 4. What is not a part of the BoP A) Investment Account. B) Current Account. C) Financial Account. D) Capital Account. Show Answer Correct Answer: A) Investment Account. 5. A US car dealer agrees an import price of US$ 25000 for aJapanese car at the current rate of exchange. Then US dollarthen weakens by 10% against the Japanese yen. What willbe the new import paid for the Japanese car? A) US$ 20000. B) US$ 22500. C) US$ 25000. D) US$ 27500. Show Answer Correct Answer: D) US$ 27500. 6. If China export goods worth rs 20 crores and imports goods worth rs 30 crores. 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. 7. What impact does an appreciated currency have on a trade deficit? A) Increases. B) Decreases. C) Stays the same. D) None of above. Show Answer Correct Answer: A) Increases. 8. Which exchange rate is officially declared by the government? A) Managed Floating Rate. B) Floating Exchange Rate. C) Fixed Exchange Rate. D) None. Show Answer Correct Answer: C) Fixed Exchange Rate. 9. A Chinese firm export goods to Singapore 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). 10. Invisible items in balance of payments include: A) Foreign remittances. B) Income from tourists. C) Internet charges. D) All the three. Show Answer Correct Answer: D) All the three. 11. Which of the following shows a current account surplus? 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: B) Export revenue is greater than import spending. 12. Surplus balance of trade means A) Imports > exports. B) Exports > imports. C) Trade balance = net income balance. D) Goods exports > services exports. Show Answer Correct Answer: B) Exports > imports. 13. The U.S. Federal Reserve sells $ 4 million worth of Treasury bonds to a Chinese investor. This would be recorded as A) Current account. B) Financial account. C) Official reserves account. D) None of above. Show Answer Correct Answer: B) Financial account. 14. Which of the following appears in the balance of trade figures? A) Short-term private capital inflow. B) Exports and imports of services. C) Exports of wool. D) Overseas aid by Australian aid groups. Show Answer Correct Answer: A) Short-term private capital inflow. 15. If 120 are required to buy $ 1, instead of 100 rupees earlier: A) Domestic currency has appreciated. B) Domestic currency has depreciated. C) Rupee value of import bill will increase. D) Both a and c. Show Answer Correct Answer: D) Both a and c. 16. The current account on a country's Balance of Payments is most likely to benefit from a depreciation of its currency when it is experiencing A) Price elastic demand for imports. B) Full employment. C) Price inelastic demand for exports. D) High interest rates. Show Answer Correct Answer: A) Price elastic demand for imports. 17. The exchange rate determined by the free play of the forces of demand and supply of foreignexchange is: A) Flexible Exchange Rate. B) Fixed Exchange Rate. C) Managed Floating. D) None. Show Answer Correct Answer: A) Flexible Exchange Rate. 18. A Dutch firm exports goods to Russia A) Credit in Dutch Current a/c. B) Debit in Dutch Current a/c. C) Credit in Dutch Capital a/c. D) Debit in Dutch Capital a/c. Show Answer Correct Answer: A) Credit in Dutch Current a/c. 19. USA citizens buys Swiss government bonds. This will get recorded in the USA BoP ac as, A) Financial ac outflow. B) Investment income inflow. C) Investment income outflow. D) Visible balance outflow. Show Answer Correct Answer: A) Financial ac outflow. 20. What is a reason for trade protection? A) To reduce a deficit on the current account of the balance ofpayments. B) To reduce a surplus on the current account of the balance ofpayments. C) To reduce economic growth. D) To reduce inflation. Show Answer Correct Answer: A) To reduce a deficit on the current account of the balance ofpayments. ← 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 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books