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FT III

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Long run disequilibrium is termed by IMF as

a)

Secular disequilibrium

b)

cyclical disequilibrium

c)

Fundamental disequilibrium

d)

secular disequilibrium

2.

Autonomous items are also termed as

a)

Below the line items

b)

Line items

c)

Above the line items

d)

None of the above

3.

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

a)

currency valuations

b)

competitiveness of domestic firms

c)

Recession in countries who are trading partners

d)

GDP

4.

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

a)

$1 million surplus

b)

$2.5 million surplus

c)

$500,000 deficit

d)

$500,000 surplus

5.

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

a)

Current account

b)

capital account

c)

unilateral account

d)

treasury account

6.

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

a)

increase in government spending

b)

cut in level of international taxes

c)

an increase in interest rates

d)

a decrease in interest rates

7.

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

a)

cyclical disequilibrium

b)

structural disequilibrium

c)

short run disequilibrium

d)

long run disequilibrium

8.

These items are independent of state of affairs of BOP

a)

autonomous items

b)

accommodating items

c)

errors and omissions

d)

none of the above

9.

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

a)

Capital inflow

b)

Capital outflow

c)

unilateral transaction

d)

all of the above

10.

Capital transactions are not recorded in

a)

Balance of Trade

b)

Balance of payment

c)

Reserve account

d)

Errors and omissions