Description : )A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency
Last Answer : (1) Soft currency Explanation: Soft currency is a currency with a value that fluctuates as a result of the country's political or economic uncertainty which may be due to balance of payments ... set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
Description : What records a country's transactions (made by individuals, firms and government bodies.) with the rest of the world? a) Trade deficit b) Capital Budget c) Foreign imports d) Balance of Payments or BoP
Last Answer : b) other things remaining equal
Description : A currency having a falling exchange rate due to continuing balance of payments deficit is called a (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency
Last Answer : Soft currency
Description : The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic ... a country and rest of the world (d) The difference between inflation and unemployment.
Last Answer : © A measure of the value of economic transactions between residents of a country and rest of the world
Description : A tariff can---raise a country’s welfare (a) sometimes (b) always © never (d) none of the above
Last Answer : a) sometimes
Description : Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners ... . Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies
Last Answer : The domestic currency is undervalued relative to other currencies
Description : Devaluation of currency can correct a Balance of Payments deficit because___ A. It lowers price of exports in foreign currency and rises price of imports in home currency B. It raises price of ... and imports in foreign currency D. It lowers price of exports and imports in home currency
Last Answer : A. It lowers price of exports in foreign currency and rises price of imports in home currency
Description : If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative, then (a) It is a case of BoP surplus ; (b) It is a case of BoP surplus where the official reserve account is in surplus; (c) It is a case of BoP deficit ; (d) It is case of BoP disequilibrium
Last Answer : (c) It is a case of BoP deficit ;
Description : “Higher the indifference curve, higher will be the level of satisfaction” (a) always true (b) always false © sometimes true and sometimes false (d) true only if price effect is positive.
Last Answer : (b) always false
Description : he annual record for all the monetary transactions of a country with other countries of the world is known as - (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet
Last Answer : (3) Balance of payments Explanation: Balance of payments (BoP) accounts arc an accounting record of all monetary transactions between a country and the rest of the world. These transactions include ... and are prepared in a single currency, typically the domestic currency for the country concerned.
Description : The annual record for all the monetary transactions of a country with other countries of the world is known as (1) Balance of trade (2) Balance of monetary-receipts (3) Balance of payments (4) Balance Sheet
Last Answer : Balance of payments
Description : Isoquants in Leontief’s input- output model are (a) Variable coefficient (b) Fixed coefficient © Sometimes fixed sometimes variable (d) None of the abov
Last Answer : (b) Fixed coefficient
Description : “ All Giffen goods are inferior, but all inferior goods are not Giffen”. The statement is (a) sometimes true (b) true © false (d) none of the above
Last Answer : (b) true
Description : Quota is very----- (a) effective (b) ineffective © sometimes effective (d) none of the above.
Last Answer : (a) effective
Description : The difference in the value of visible exports and visible imports is called : (1) Balance Sheet of items (2) Balance of Payments (3) Balance of Trade (4) Balance of Account
Last Answer : (3) Balance of Trade Explanation: Balance of Trade refers to the difference between the value of a country's visible imports and visible exports. Also known as the visible balance, it forms part of ... totals more than the value of visible exports, it is known as an adverse balance of trade.
Description : The best Index of Economic Development is provided by: (1) Growth in Percapita Real Income from year to year. (2) Growth in National Income at Current Prices. (3) Growth in savings ratio. (4) Improvement in the Balance of Payments Position.
Last Answer : (1) Growth in Percapita Real Income from year to year. Explanation: Per capita Gross National Product (GNP) is the best index of development. It can be derived by dividing the GNP of a ... its world development report 1998, classified the countries in the world on the bases of per capita GNP.
Description : In the balance of payments account, unrequited receipts and payments are also regarded as - (1) bilateral transfers (2) unilateral transfers (3) capital account transfers (4) invisible transfers
Last Answer : (2) unilateral transfers Explanation: Unrequited receipts and payments are also regarded as unilateral transfers as the flow is only in one direction with no automatic reverse flow in the other ... borrowings nor lending, but gifts and grants exchanged between governments and people in the world.
Description : The balance of payments of a country is in equilibrium when the - (1) demand as well as supply of the domestic currency are the highest (2) demand for the domestic currency is equal to its supply (3) demand for the domestic currency is the highest (4) demand for the domestic currency is the lowest
Last Answer : (2) demand for the domestic currency is equal to its supply Explanation: When the balance of payments (BOP) of a country is in equilibrium, the surplus or deficit is eliminated from the ... currency is equal to its supply. The demand and supply situation is thus neither favourable nor unfavourable.
Description : Short term loans to correct Balance of Payments problems is given by (1) I.M.F. (2) I.B.R.D (3) I.D.A (4) A.D.B
Last Answer : (1) I.M.F. Explanation: Upon Initial IMF formation, its two primary functions were: to oversee the fixed exchange rate arrangements between countries, thus helping national governments manage their ... to prioritize economic growth, and to provide short-term capital to aid balance-of-payments.
Description : Which one of the following items is not included in the current account of India's Balance of Payments? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : (2) Non-monetary gold movements Explanation: Balance of payments (BoP) accounts are an accounting record of all monetary transactions between a country and the rest of the world. These ... factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.
Description : According to monetary approach of Balance of Payments, the demand for money is a stable function of (a) income, prices and rate of interest (b) income and prices (c) prices and rate of interest (d) income, prices and foreign exchange reserves
Last Answer : income, prices and rate of interest
Description : In the balance of payments account, unrequited receipts and payments are also regarded as (1) bilateral transfers (2) unilateral transfers (3) capital account transfers (4) invisible transfers
Last Answer : unilateral transfers
Description : The balance of payments of a country is in equilibrium when the (1) demand as well as supply of the domestic currency are the highest (2) demand for the domestic currency is equal to its supply (3) demand for the domestic currency is the highest (4) demand for the domestic currency is the lowest
Last Answer : demand for the domestic currency is equal to its supply
Last Answer : I.M.F.
Last Answer : Growth in Percapita Real Income from year to year.
Description : Which one of the following items is not included in the current account of India’s Balance of Payments ? (1) Short-term commercial borrowings (2) Non-monetary gold movements (3) Investment income (4) Transfer payments
Last Answer : Non-monetary gold movements
Last Answer : Balance of Trade
Description : What is the relation between fiscal deficit (FD) and primary deficit (PD)? a) PD = FD - Depreciation b) PD = FD - Interest payments c) FD = PD - Interest payments d) FD = PD - Depreciation
Last Answer : PD = FD - Interest payments
Description : The International Monetary Fund is important because: A. It has sufficient financial resources to deal with a major global financial crisis. B. It has sufficient financial resources to help individual ... C. Emerging economies can exercise significant influence on it. D. It fixes exchange rates.
Last Answer : It has sufficient financial resources to help individual countries facing balance of payments problems
Description : Terms of trade in developing countries are generally unfavourable because (a) They export manufacturing products. (b) They export primary products. © They export few goods. (d) Both (a) and (c).
Last Answer : (b) They export primary products.
Description : Trade between two countries can be beneficial if cost ratio between two countries are ( a) Same (b) Different © Undetermined (d) Decreasing
Last Answer : (b) Different
Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.
Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country
Description : .In Heckscher Ohlin theory production function differ between commodities but are same between---- (a) countries. (b) factors © costs. (d) revenues.
Last Answer : (a) countries.
Description : flation (a) Always reduces cost of living (b) Always reduces standard of living © Reduces price of products (d) Reduces purchasing power of money
Last Answer : (d) Reduces purchasing power of money
Description : In context to agriculture what is Fallow Land ? a. Fallowing is the process to make the soil rich in phosphorus b. Agricultural land which is added with organic matter to reduce its ... . Agriculture field which is left unplanted so that the soil's natural nutrient balance can be restored
Last Answer : d. Agriculture field which is left unplanted so that the soil’s natural nutrient balance can be restored.
Description : In context to agriculture what is Fallow Land ? a. Fallowing is the process to make the soil rich in phosphorus b. Agricultural land which is added with organic matter to reduce its ... Agriculture field which is left unplanted so that the soil's natural nutrient balance can be restored.
Last Answer : d. Agriculture field which is left unplanted so that the soil’s natural nutrient balance can be restored
Description : Implicit costs are (a) equal to total fixed costs (b) comprised entirely of variable costs (c) payments for self-employed resources (d) always greater in the short run than in the long run
Last Answer : (c) payments for self-employed resources
Description : When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called __________ A. Revenue Deficit B. Budgetary Deficit C. Zero Budgeting D. Trade Gap E. Balance of Payment Problem
Last Answer : B. Budgetary Deficit Explanation: Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government ... leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.
Description : The pre-liberalisation era of Indian Economy was under the grip of A. Unemployment B. Under-employment C. Fiscal Deficit D. Unfavorable and alarming balance of payment
Last Answer : D. Unfavorable and alarming balance of payment
Description : A country’s Current Account: A. Balance equals the change in its net foreign wealth. B. Balance equals the change in its foreign wealth. C. Surplus equals the change in its foreign wealth. D. Deficit equals the change in its foreign wealth. E. None of the above.
Last Answer : A. Balance equals the change in its net foreign wealth.
Description : Countries with per capita income of US$ per annum and above in 2017, are called rich countries? a. 12,126 b. 11246 c. 12056 d. 10056
Last Answer : c. 12056
Description : Countries with per capita income of US$per annum and above in 2017, are called rich countries? a. 12,126 b. 11246 c. 12056 d. 10056
Description : What is the rich, handsome/beautiful, successful version of you in an alternate universe currently doing this very second and how does it differ from what you're doing?
Last Answer : The pricks probably still asleep whilst I’m waking up for my 12hour shift
Description : Do you think Trump is trying to reduce the trade deficit by imposing taxes on importers and people who buy imported goods in the form of tariffs?
Last Answer : On the supply side; grain and produce numbers are DROPPING for USA farmers. So, no it is will not reduce deficit because we have reduce what is being sold to China and others impacted by tariffs.
Description : Gresham's law is related to - (1) Consumption and demand (2) Supply and demand (3) Circulation of money (4) Deficit financing
Last Answer : (3) Circulation of money Explanation: Gresham's law is an observation in economics that "bad money drives out good." More exactly, if coins containing metal of different value have the same value as ... 1558 prompted the economist H.D. Macleod to suggest the term Gresham's law in the 19th century.
Description : Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan
Last Answer : (1) Debt Servicing Explanation: Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds. or the principal of maturing bonds. An ... or company unable to make such payments is said to be "unable to service one's debt."
Description : Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : (3) fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments ... financing in India means the expenditure which in excess of current revenue and public borrowing.
Description : Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : (1) inflation Explanation: Deficit financing is a practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds ... increasing the money supply and the purchasing power of the people which increases the aggregate demand.