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B.O.P

Total questions: 11

Worksheet time: 10mins

Name
Class
Date
1.

     The balance of payment contains information regarding     

 

 

a)

A. purchases of Malaysia’s financial assets by foreigners.

b)

B.       purchases of foreign financial assets by Malaysian.

c)

C.       levels of Malaysia’s exports and imports.

d)

D.      all of the above.

2.

        The situation when a country exports more than it imports is known as _______.

a)

A.  a trade surplus

b)

B.  a budget surplus

c)

C.   an expansion.

d)

D.  a term of trade.

3.

        Which of the following is NOT included in the current account balance?

 

a)

A.  Balance of goods and services.

b)

B.  Financial account.

c)

C.  Current transfer.

d)

D. Net income

4.

 

       Which of the following is NOT considered as a unilateral transfer?

.

a)

A.  Income earned from foreign investments.

b)

B.  Personal gifts to friends or family abroad.

c)

C. Institutional charitable donations

d)

D. Government transfers to foreign residents.

5.

The deficit in the balance of payments account can be corrected by

 

a)

A. lowering domestic prices.

b)

B. raising indirect taxes.

c)

C. increasing government expenditures.

d)

D. lowering the interest rate.

6.

Which of the following policies is inappropriate to correct a deficit balance of payments?

a)

A. Encouraging import of capital.

b)

B. Discouraging the import of goods.

c)

C.  Devaluation of the currency.

d)

D. Controls of inflation

7.

Which action is not suitable for correcting a deficit in the balance of payments?

a)

A.  Discouraging import

b)

B. Imposition of tariff

c)

C.  Appreciation of currency

d)

D. Exchange controls

8.

The prohibited goods and services from countries with different ideologies entering other countries can be referred to.

a)

A. Tariff

b)

B. Quota

c)

C. Embargo

d)

D. Subsidies on export

9.

International trade benefits trading countries because it leads to____________.

 

a)

A. increase world output

b)

B. increase inflation in a country

c)

C. transportation cost will expensive

d)

D. decrease income and economic growth

10.

Ability of a country to produce more product than another country known as ______________.

a)

A. an unfair advantage

b)

B.  an absolute advantage

c)

C. a productive advantage

d)

D.  a comparative advantage

11.

Balance of current account          RM 53 700

Balance good & service RM 22 000

Balance on capital account        RM 62 500

Errors and omission              RM 8 600

How much the value of the overall balance? (a)   .