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question_answer1)
Choose the correct statement from given below.
A)
Balance of trade records the exports and imports of invisible items. done
clear
B)
A surplus in BoT can rectify the deficit in BoP. done
clear
C)
Accommodating items are only recorded in capital account of BoP. done
clear
D)
Import of machinery will be recorded in capital account of BoP. done
clear
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question_answer2)
Choose the correct statement from given below.
A)
Balance of Trade is a component of capital account of Balance of Payments. done
clear
B)
Floating exchange rate is used to stabilize price of foreign currency. done
clear
C)
Increase in the supply of foreign exchange rate leads to fall in its price. done
clear
D)
Rise in exchange rate leads to revaluation of currency. done
clear
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question_answer3)
Write the correct sequence of options in Column II by matching them with options of Column I.
| Column I | | Column II |
A. | Visible items | (i) | Items consisting of capital receipts and capital payments |
B. | Invisible items | (ii) | All types of physical goods |
C. | Capital transfers | (iii) | All types of services |
Codes
A)
A-(i) B-(ii) C-(iii) done
clear
B)
A-(ii) B-(iii) C-(i) done
clear
C)
A-(iii) B-(ii) C-(i) done
clear
D)
A-(i) B-(iii) C-(ii) done
clear
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question_answer4)
Current account records all payments to rest of the world as ......... and all receipts from rest of the world as
A)
Credit, debit done
clear
B)
Debit, credit done
clear
C)
Debit, debit done
clear
D)
Credit, credit done
clear
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question_answer5)
Balance on invisible trade is equal to
A)
Export of goods -Import of goods done
clear
B)
Export of services - Import of services done
clear
C)
Import of goods - Export of goods done
clear
D)
Import of services - Export of goods done
clear
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question_answer6)
If value of visible exports is greater than the value of invisible imports, the balance relates to
A)
Current account BoP done
clear
B)
Trade deficit done
clear
C)
Capital account BoP done
clear
D)
Can't be determined done
clear
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question_answer7)
Balance of trade is a ......... concept as compared to balance of payments.
A)
narrower done
clear
B)
broader done
clear
C)
similar done
clear
D)
None of the above done
clear
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question_answer8)
If trade deficit is Rs. 1,500 crores and import of goods are Rs. 3,500 crores, value of export of goods will be Rs.2,000 crores.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer9)
Trade deficit refers to the situation where
A)
export of goods is more than import of goods. done
clear
B)
export of goods is less than import of goods. done
clear
C)
export of services is more than import of services. done
clear
D)
export of services is less than import of services. done
clear
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question_answer10)
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | | Column II |
A. | External assistance | (i) | Current account of BoP |
B. | Foreign direct Investment | (ii) | Credit item of capital account of BoP |
C. | Export and import of goods | (iii) | Debit item of capital account of BoP |
Codes
A)
A-(i) B-(iii) C-(ii) done
clear
B)
A-(ii) B-(iii) C-(i) done
clear
C)
A-(i) B-(ii) C-(iii) done
clear
D)
A-(iii) B-(i) C-(ii) done
clear
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question_answer11)
Uni-lateral transfers are included in
A)
current account BoP done
clear
B)
capital account BoP done
clear
C)
Both (a) and (b) done
clear
D)
None of these done
clear
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question_answer12)
If value of exports is Rs. 5,000 crores and import of Rs. 3,050 crores, balance of trade shows
A)
Surplus of Rs. 1,950 crores done
clear
B)
Deficit of Rs. 1,950 crores done
clear
C)
Surplus of Rs. 5,000 crores done
clear
D)
Deficit of Rs. 3,050 crores done
clear
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question_answer13)
Identify the correct pair of formula from the following column I and II.
| Column I | | Column II |
A. | Current account surplus | (i) | Receipts <Payments |
B. | Current account surplus | (ii) | Receipts > Payments |
C. | Balance current account | (iii) | Receipts \[\ne \] Payments |
D. | Current account deficit | (iv) | Receipts \[\le \] Payments |
Codes
A)
A - (i) done
clear
B)
B - (iii) done
clear
C)
C - (iii) done
clear
D)
D - (iv) done
clear
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question_answer14)
Which of the following is not a component of current account of BoP?
A)
Balance of trade done
clear
B)
Balance of invisibles done
clear
C)
Investment income done
clear
D)
All of the above are the components of current account done
clear
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question_answer15)
India outsources voice-based services and record keeping on a large scale. This will be considered as
A)
Export of visible done
clear
B)
Export of merchandise done
clear
C)
Export of invisibles done
clear
D)
Both (b) and (c) done
clear
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question_answer16)
If trade deficit shows a balance of Rs. (-) 1,500 crores and export of goods is Rs. 5,500 crores, value of import of goods will be
A)
Rs. 6,000 crores done
clear
B)
Rs. 7,000 crores done
clear
C)
Rs. 75,00 crores done
clear
D)
Can't be determined done
clear
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question_answer17)
Suppose India is exporting goods more as compared to importing goods, this will lead to ......... in balance of trade.
A)
surplus done
clear
B)
deficit done
clear
C)
Either (a) or (b) done
clear
D)
None of the above done
clear
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question_answer18)
A deficit in ......... can be covered by a surplus in .......... while the reverse cannot be done.
A)
BoP, BoT done
clear
B)
BoT, BoP done
clear
C)
current account, capital account done
clear
D)
capital account, current account done
clear
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question_answer19)
Increase in foreign exchange reserves are recorded in credit side of capital account.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer20)
Increase in domestic interest rate on investment leads to surplus in capital account.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer21)
An Indian real estate company receives rent from Google in New York. This transaction would be recorded o ......... side of ......... account.
A)
credit, current done
clear
B)
debit, capital done
clear
C)
credit, capital done
clear
D)
debit, current done
clear
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question_answer22)
Which of the following is/are component (s) of capital account of BoP?
A)
Foreign direct investment done
clear
B)
Borrowing from IMF by the government done
clear
C)
Foreign exchange reserve done
clear
D)
All of the above are components of BoP done
clear
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question_answer23)
Choose the incorrect statement from given below.
A)
Repayment of loan taken from IMF will be recorded on debit side. done
clear
B)
Surplus in BoP refers to a state where debit side exceeds credit side. done
clear
C)
Increase in investment from rest of the world decreases the exchange rate. done
clear
D)
Devaluation of current items improves trade balance of domestic country. done
clear
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question_answer24)
For equilibrium in balance of payments, sum total of ......... account and ......... account should be zero.
A)
accommodating, autonomous done
clear
B)
current, capital done
clear
C)
current, autonomous done
clear
D)
capital, accommodating done
clear
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question_answer25)
Transactions which are undertaken to cover the dis-equilibrium (deficit or surplus) in balance of payments are called ......... .
A)
autonomous done
clear
B)
accommodating done
clear
C)
current account done
clear
D)
None of the above done
clear
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question_answer26)
Write the correct pair.
| Column I | | Column II |
A. | Export and import of goods | (i) | Accommodating item |
B. | Foreign exchange reserve | (ii) | Autonomous item |
C. | Balance of trade | (iii) | Difference between the export and import of visible items |
D. | Uni-lateral transfers | (iv) | Factor incomes in the form of interest, rent, etc |
Codes
A)
A-(i) done
clear
B)
B-(ii) done
clear
C)
C-(iii) done
clear
D)
D-(iv) done
clear
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question_answer27)
State of balance of payments always balances regardless of the types of transactions.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer28)
Autonomous items are known as "below the line items."
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer29)
BoP always balance when accommodating items are reflected as a part of capital account of BoP.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer30)
How is the state of balance of payments affects, when government is directly involved in foreign trade?
A)
Balance in BoP improves done
clear
B)
Balance in BoP deteriorates done
clear
C)
Depends upon trade balance done
clear
D)
None of the above done
clear
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question_answer31)
Balance of payments 'surplus refer to excess of
A)
Current account payment over current account receipts done
clear
B)
Capital account payment over capital account receipts done
clear
C)
Autonomous payments over autonomous receipts done
clear
D)
Autonomous receipts over autonomous payments done
clear
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question_answer32)
Currency depreciation leads to improvement on balance of trade.
A)
True done
clear
B)
False done
clear
C)
Partially true done
clear
D)
Can't be predicted done
clear
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question_answer33)
What will be the likely impact of increase in tariff on balance of trade keeping other things unchanged?
A)
Improve done
clear
B)
Deteriorate done
clear
C)
Remain constant done
clear
D)
None of the above done
clear
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question_answer34)
At the state of equilibrium in balance of payments, there will be deficit in either of the accounts. Deficit in which account will be considered as better?
A)
Current account done
clear
B)
Capital account done
clear
C)
Both (a) and (b) done
clear
D)
Neither (a) nor (b) done
clear
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question_answer35)
For balance of payments to be in equilibrium, which of the following will happen?
A)
Surplus in current account equals to deficit in capital account done
clear
B)
Surplus in capital account equals to deficit in current account done
clear
C)
Either (a) or (b) done
clear
D)
Neither (a) nor (b) done
clear
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question_answer36)
Which of the following types of deficit is/are common in case of India?
A)
Trade deficit done
clear
B)
Capital account deficit done
clear
C)
Current account deficit done
clear
D)
Both (a) and (c) done
clear
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question_answer37)
During the outbreak of the second wave of Covid-19 in the country, India received medical equipments from many countries. On which account and which side it will be recorded?
A)
Capital account, credit side done
clear
B)
Current account, credit side done
clear
C)
Capital account, debit side done
clear
D)
Current account, debit side done
clear
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question_answer38)
Autonomous transactions/items of balance of payments are recorded in
A)
Current account done
clear
B)
Capital account done
clear
C)
Both (a) and (b) done
clear
D)
Neither (a) nor (b) done
clear
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question_answer39)
What will be the impact of Make in India Programme on the India's BoP?
A)
Improve done
clear
B)
Deteriorate done
clear
C)
No Change done
clear
D)
Either (a) or (b) done
clear
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question_answer40)
Favourable dis-equilibrium in BoP account leads to
A)
Increase in official reserve with RBI done
clear
B)
Decrease in official reserve with RBI done
clear
C)
No change in official reserve with RBI done
clear
D)
Both (a) and (b) done
clear
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question_answer41)
From the set of statements given in column I and Column II. Choose the correct pair of statements.
| Column I | | Column II |
A. | Export of software to France | (i) | Debit side of current account |
B. | Import of machinery from China | (ii) | Capital account of balance of payments |
C. | Remittances to relative staying abroad | (iii) | Debit side of current account of balance of payments |
D. | Investment by Apple phones firm in India | (iv) | Credit side of current account of balance of payments |
Codes
A)
A-(i) done
clear
B)
B-(ii) done
clear
C)
C-(iii) done
clear
D)
D-(iv) done
clear
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question_answer42)
'Charity from Abroad' will be recoreded on ......... side of the balance of payments accounts.
A)
debit done
clear
B)
credit done
clear
C)
Either (a) or (b) done
clear
D)
Not recorded done
clear
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