Top 150+ Solved General Economics 2 MCQ Questions Answer
Q. A decrease in the domestic currency price of foreign currency is:
a. Depreciation
b. Appreciation
c. Euro currency
d. Hedging
Q. Normal rate quoted in foreign exchange market is:
a. Arbitrage
b. Balance of trade
c. Exchange rate
d. Price rate
Q. Balance of payment consist of:
a. Trade in visible
b. Trade in invisibles
c. International capital flows
d. All of the above
Q. Devaluation of currency may result in:
a. Increase in export
b. Increase in import
c. Increased capital flow
d. Capital outflow
Q. Balance of payment take in to account:
a. Visible items
b. Invisible items
c. Both visible and invisible item
d. None of the above
Q. A fall in the price of Rupee in terms of foreign exchange is termed as:
a. Depreciation
b. Appreciation
c. Devaluation
d. Revaluation
Q. Transaction in travel, transportation and insurance between countries is included under:
a. Merchandise
b. Official reserves
c. Invisibles
d. None of the above
Q. Which of the following transaction is debit in balance of payment;
a. Export of merchandise
b. Export of service
c. Gift from foreigners
d. Gift to foreigners
Q. Which is the component of capital account of balance of payment:
a. Service payments
b. Portfolio investment
c. Export
d. Interest receipts
Q. Under fixed exchange rate system, when domestic currency is moved to a higher parity in terms of vehicle currency is:
a. Appreciation
b. Depreciation
c. Devaluation
d. Revaluation
Q. Which one of the following is correct when there is under valuation of domestic currency:
a. Encouraging exports and inflow of capital
b. Foreign goods cheaper and exports dearer
c. Country imports more and exports less
d. There is outflow of capital
Q. In balance of payment , if current account registers a deficit, the capital and financial account must register a:
a. Deficit
b. Balance
c. Surplus
d. Capital outflow
Q. In all balance of payment accounts, there are a fictitious head of account called:
a. Invisibles
b. Deficits
c. Reserves
d. Errors and omissions
Q. Balance on merchandise and service trade is called:
a. Balance of payment
b. Trade balance
c. Current account
d. Balance on goods and services