12th Grade > Economics - 2
THE OPEN ECONOMY MCQs
Total Questions : 18
| Page 1 of 2 pages
Answer: Option D. -> all of these
:
D
Current account looks at all these items.
:
D
Current account looks at all these items.
Answer: Option B. -> False
:
B
The given statement is false. Financial assets are a part of the BoP.
:
B
The given statement is false. Financial assets are a part of the BoP.
Answer: Option A. -> both depreciation of the domestic currency and rise in the import bill occur
:
A
This is a case of depreciation, and the import bill rises as a result.
:
A
This is a case of depreciation, and the import bill rises as a result.
Answer: Option D. -> Both a and c
:
D
The BOP includes both official transfers of currency and loans and aid.
:
D
The BOP includes both official transfers of currency and loans and aid.
Answer: Option A. -> Current account balance + capital account balance is some negative number
:
A
The balance of payments shows disequilibrium if the sum of current and capital account balance is not equal to zero, or is equal to a positive or a negative value.
:
A
The balance of payments shows disequilibrium if the sum of current and capital account balance is not equal to zero, or is equal to a positive or a negative value.
Answer: Option B. -> autonomous items
:
B
Autonomous items cause an imbalance in the BoP, and accommodating items correct these imbalances.
:
B
Autonomous items cause an imbalance in the BoP, and accommodating items correct these imbalances.
Answer: Option C. -> Always balanced
:
C
The balance of payments is always balanced.
:
C
The balance of payments is always balanced.
Answer: Option C. -> Both (a) and (b)
:
C
The current account records imports and exports, as well as transfer payments.
:
C
The current account records imports and exports, as well as transfer payments.
Answer: Option B. -> both (a) and (b)
:
B
Disequilibrium in the BoP can cause an increase or a decrease in the official reserves, depending on whether there is a deficit or a surplus.
:
B
Disequilibrium in the BoP can cause an increase or a decrease in the official reserves, depending on whether there is a deficit or a surplus.
Answer: Option C. -> 6,000
:
C
Exports = Balance of Trade + Imports = -4,000 + 10,000 = 6,000
:
C
Exports = Balance of Trade + Imports = -4,000 + 10,000 = 6,000