Balance of Payments Test 02 Preparation Online

1. Visible exports include?

A. Computer software

B. Remittance

C. Transport cost

D. Computer hardware

2. Export of goods is called trade in?

A. Real goods

B. Visible goods

C. Basic goods

D. Invisible goods

3. Flexible exchange rate system has the advantage?

A. None of the above

B. Automatic adjustment of balance of payments

C. Easy to borrow from world bank

D. Encourages exports

4. IMF represents?

A. International Money Forum

B. International Monetary Fund

C. International Money Flow

D. International Monetary Finance

5. If balance of payments of country is in deficit, then?

A. (a) and (c) of above

B. The country can borrow from abroad

C. Current account will be in deficit

D. Country can increase money supply to meet deficit

6. Visible imports include?

A. Transport cost

B. Machinery

C. Remittance

D. Computer software

7. Fixed exchange rate system has the advantage?

A. Automatic adjustment of balance of payments

B. Discourages unnecessary speculation about future trade deals

C. Increases govt. control over foreign trade

D. (b) and (c) of above

8. The balance of payments account of a country includes?

A. Official transfer of foreign exchange

B. Smuggling transactions

C. Loans and aid

D. Both a and c of the above

9. Visible goods are recorded in this part of balance of payments account?

A. Official account

B. Capital account

C. Current account

D. Govt. account

10. Export of goods is called trade in?

A. Non-real goods

B. Invisible goods

C. Visible goods

D. Basic goods

Balance of Payments Test 02 Preparation Online

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