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Economics Balance of Payments
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1. Balance of payments of a country includes:
Current account
Moentary account
Capital account
All of above
2. Balance of payments of a country includes:
Balance of trade
Capital receipts and payments
Saving and investment account
Both (a) and (b)
3. Final balance of payments of a country is:
Always balanced
Always deficit
Always surplus
Fluctuates
4. Balance of payments of a country has parts:
2
3
4
5
5. Exchange rate for currencies is determined by supply and demand in system of:
Fixed exchange rate
Flexible
Constant
Govt. regulated
6. If GNP of Pakistan rises it will encourage:
Exports
Imports
Both
None of these
7. A country that does not trade with other countries is called an economy:
Open
Closed
Independent
None of these
8. If Japanese import more goods from Pakistan (other things remain same)
Our balance of payments will improve
Japan s BOP will deteriorate
Our BOP will deteriorate
(a) and (b) of above
9. Invisible items in balance of payments include:
Foreign remittances
Income from tourists
Internet charges
All the three
10. Pakistan follows the policy of:
Fixed exchange rate
Flexible exchange rate
Controlled exchange rate
Increasing exchange rate
11. It helps countries to meet deficit in balance of payments:
IMF
WTO
World Bank
UNO
12. The balance of payments of country means
Balance in income and expenditure of govt.
Balance in demand and supply of money
Balance in export and import earnings
The annual account of foreign trade
13. Pakistan s exports are part of our GDP:
5%
15%
25%
35%
14. What would cause a country s exchange rate to fall:
An increased demand for its exports
An increased demand for its imports
An increased in flow of capital
None of the above
15. Which of the following must always balance:
Balance of visible trade
Balance of invisible trade
Balance on the current account
Balance of payments
16. What will be expected result if the value of rupee falls against dollar?
The price of Pakistani goods in USA will rise
The price of American goods in USA will fall
The price of American goods in USA with fall
The price of American goods in Pakistan will rise
17. If Toyota Company establishes a factory in Pakistan this will be recroded in balance of payments in the section:
Capital account
Visible balance
Invisible balance
Official financing
18. If CDA (Capital Development Authority Islamabad) gets a loan from World Bank for roads it will be recorded in the balance of payments in section:
Capital account
Visible balance
Invisible balance
Official financing
19. Which of the following must always balance?
Balance of visible trade
Balance of invisible trade
Balance on the current balance
Balance of payments
20. Which of the following compares the average price of exports to average price of imports?
The balance of payments
The balance of trade
The exchange rate
The terms of trade
21. IMF represents
International Monetary Fund
International Money Flow
International Money Forum
International Monetary Finance
22. Flexible exchange rate system has the advantage:
Automatic adjustment of balance of payments
Easy to borrow from world bank
Encourages exports
None of the above
23. Fixed exchange rate system has the advantage:
Automatic adjustment of balance of payments
Increases govt. control over foreign trade
Discourages unnecessary speculation about future trade deals
(b) and (c) of above
24. Export of goods is called trade in:
Visible goods
Invisible goods
Basic goods
Real goods
25. Export of goods is called trade in:
Visible goods
Invisible goods
Basic goods
Non-real goods
26. Visible goods are recorded in this part of balance of payments account:
Current account
Capital account
Govt. account
Official account
27. Visible goods are recorded in this part of balance of payments account:
Current account
Capital account
Govt. account
Official account
28. Visible imports include:
Remittance
Machinery
Computer software
Transport cost
29. If balance of payments of country is in deficit, then:
Current account will be in deficit
Country can increase money supply to meet deficit
The country can borrow from abroad
(a) and (c) of above
30. The balance of payments account of a country includes:
Official transfer of foreign exchange
Smuggling transactions
Loans and aid
Both a and c of the above
31. Foreign exchange reserves increase if:
Govt. increases taxes
Exports increase imports remain the same
Imports increase exports remain the same
(a) and (b) of above
32. The receipts and payments for goods exported and imported are counted in:
Trade account
Capital account
Current account
Monetary account
33. IMF has given loan to Pakistan. It will improve Pakistan s:
Current account
Capital account
Overall balance of payments
(b) and (c) of above
34. IMF gives loans:
To fill gap in balance of payments
To fill gap in government budget
To decrease inflation
To increse employment opportunities
35. In capitalism there is sovereignty of:
Producer
Consumer
Government
Businessmen
36. Basic principle of Islamic economic system is:
Equality
Justice
High profit
Less consumption
37. In capitalistic system, prices of goods are determined by:
Sellers
Buyers
Government
Forces of demand and supply
38. In socialistic system, prices of goods are determined by:
Sellers
Buyers
Government
Forces of demand and supply
39. In working of markets, the Islamic system is nearer to:
Capitalism
Socialism
Mixed economy
None of the above
40. Which is the basic economic problem, which is common in all economic systems:
Allocation of scarce resources
Elimination of inflation
To increase exports
To reduce taxation
41. In a country like Pakistan:
All economic decisions are made through markets
There is no planning
Govt. owns most of the means of production
There is reliance on market
42. In Islamic economic system:
All economic decisions are made through markets
There is no planning
Govt. owns most of the means of production
There is reliance on market
43. Capitalism is defined as an economic system where there is:
A lack of planning
A reliance over free market
Private ownership of property
All of the above
44. Pakistan having a:
Mixed economy
Capitalistic economy
Socialistic economy
Islamic economy
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