FT III

Long run disequilibrium is termed by IMF as

• Secular disequilibrium

• cyclical disequilibrium

• Fundamental disequilibrium

• secular disequilibrium

Autonomous items are also termed as

• Below the line items

• Line items

• Above the line items

• None of the above

Which of the following does NOT impact the trade balance of a country?

• currency valuations

• competitiveness of domestic firms

• Recession in countries who are trading partners

• GDP

If a country had $1 million in exports and $1.5 million in imports, what would the trade balance be?

• $1 million surplus

• $2.5 million surplus

• $500,000 deficit

• $500,000 surplus

Which of the following is NOT part of the balance of payments?

• Current account

• capital account

• unilateral account

• treasury account

Which of the following would be an appropriate policy to reduce a balance of payments deficit?

• increase in government spending

• cut in level of international taxes

• an increase in interest rates

• a decrease in interest rates

A disequilibrium caused due to change in tastes and preferences, war, technology etc

• cyclical disequilibrium

• structural disequilibrium

• short run disequilibrium

• long run disequilibrium

These items are independent of state of affairs of BOP

• autonomous items

• accommodating items

• errors and omissions

• none of the above

when Reliance / any Indian company invests abroad, it amounts to

• Capital inflow

• Capital outflow

• unilateral transaction

• all of the above

Capital transactions are not recorded in

• Balance of Trade

• Balance of payment

• Reserve account

• Errors and omissions