Top 50+ Solved Foreign Trade and Balance of Payment MCQ Questions Answer
Q. ____ is a systematic record of all the economic transaction between one countryand rest of the would:
a. Balance of Trade
b. Balance of Transaction
c. Budget
d. Balance of payments
Q. As per IMF balance of payment manual, import export of goods should bepresented on:
a. FOB basis
b. FOR basis
c. CIF basis
d. All of these
Q. OECD stands for:
a. Organization for export co-operation & development
b. Organization for economic commission & development
c. Organization for export commission & development
d. Organization for economic co-operation & development
Q. India has witnessed a surplus for the third successive year in which account of thebalance of payment?
a. Trade account of BOP
b. Current account of BOP
c. Both (a) and (b)
d. None of these
Q. In India which authority takes the purview of import & export:
a. EXIM
b. RBI
c. Ministry of Finance
d. Ministry of commerce
Q. Devaluation means:
a. To reduce the value of home currency in other currency
b. To appreciate the value of home currency
c. To increase the value of home currency in other currency.
d. To constant the value of home currency.
Q. _______ is a systematic record of all transactions of a country in a year.
a. Balance of payment
b. Balance of Trade
c. Current Account of Balance of Payment
d. None.
Q. The current account of Balance of Payment includes trade balance and _______.
a. Settlement account
b. Capital account
c. Invisibles
d. Errors and omissions.
Q. Balance of payment deficit can be removed through:
a. Devaluation of currency
b. Vigorous export promotion
c. Import substitution
d. All of the above.
Q. The difference between the value of a nations visible exports and visibleimport is.
a. Balance of trade.
b. Balance of payments.
c. Balance of current Account.
d. Balance of Capital Account.
Q. Which of the following is NOT a restriction to international trade?
a. Quotas.
b. GATT.
c. Subsidies.
d. Exchange controls.
Q. FDI stands for:
a. foreign direct investment.
b. foreign domestic investment.
c. foreign direct intervention.
d. foreign direct intermediation
Q. The balance of payments of a country records flows of money from:
a. imports and exports and investment flows.
b. imports and exports and investments flow and speculative flows.
c. imports and exports.
d. imports and exports and domestic deman
Q. Trade between two countries can be useful if cost ratios of goods are:
a. Undetermined
b. Decreasing
c. Equal
d. Different
Q. The term Euro Currency market refers to
a. The international foreign exchange market
b. The market where the borrowing and lending of currencies take place outside the country of issue
c. The countries which have adopted Euro as their currency
d. The market in which Euro is exchanged for other currencies