International Economics MCQs and Notes
Q. Which among the following is NOT a measure to correct the balance of payment disequilibrium?
✅ Correct Answer: (D)
non of the above
Q. Which among the following sentence is NOT true
✅ Correct Answer: (C)
a surplus in a nation’s balance of payments is given by a net debit balance in the nation’s autonomous items and a deficit is given by a net credit balance.
Q. Distinguish between autonomous and accommodating items in the balance of payments.
✅ Correct Answer: (D)
all the above
Q. Official reserves consist of
✅ Correct Answer: (D)
all the above
Q. The _______________ records all international financial transactions that involve resident of the country concerned- changing either his assets with or his liabilities to a resident of another country.
✅ Correct Answer: (B)
capital account
Q. _______________are receipts which the residents of a country receive for free, without making any present or future service transaction in return.
✅ Correct Answer: (C)
unilateral transfers
Q. Which among the following best explains the difference between Trade in Invisibles and merchandise trade?
✅ Correct Answer: (D)
all the above.
Q. When each international transaction undertaken by the residents of a country are entered as a debit and credit entry of equal size, into the balance of payments, the method is known as.
✅ Correct Answer: (C)
double entry bookkeeping
Q. If Debit balance in the balance of payment accounts are greater than the Credit balance it leads to
✅ Correct Answer: (B)
balance of payment deficit