Balance of Payments Test

Result

Balance of Payments Test - 1

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Foreign exchange rate of a country is the

A
price of a foreign good in terms of the domestic good

B
price of a foreign factor in terms of the domestic factor

C
price of a foreign currency in terms of the domestic currency

D
price of a foreign trade in terms of the domestic trade

Solution

Explanation:

Foreign exchange rate defines the price of currency of domestic country in terms of foreign currency
Question 2
1 / -0

A source of supply of foreign exchange is

A
Exports

B
Donations given

C
Imports

D
Gifts

Solution

Explanation:

When price of a foreign currency rises, domestic goods become relatively cheaper. It induces the foreign country to increase their imports from the domestic country
Question 3
1 / -0

Foreign exchange means

A
US Dollars

B
Any currency other than the domestic currency

C
Any currency

D
Domestic currency
Question 4
1 / -0

Balance of payment Accounts is a

A
Systematic record of all expenditures between the residents of a country and abroad

B
Systematic record of all economic transactions between the residents of a country

C
Systematic record of all receipts between the residents of a country and abroad

D
Systematic record of economic transactions between the residents of a country & abroad

Solution

Explanation:

Balance of payment account is a systematic record of all economic transactions between residents of home country and residents of foreign countries during a given point of time.
Question 5
1 / -0

A source of demand for foreign exchange is

A
Brokerage of goods & services

B
Export of goods & services

C
Smuggle of goods & services

D
Import of goods & services
Question 6
1 / -0

A deficit in balance of trade indicates

A
That the imports of good are equal to the exports

B
That the imports of good are greater than the exports

C
None of the above

D
That the imports of good are less than the exports
Question 7
1 / -0

Fixed exchange rate is

A
is fixed by the businesses in an economy

B
is fixed by the Government in an economy

C
is fixed by the foreign exchange market

D
is fixed by the anybody in an economy

Solution

Explanation:

A fixed exchange rate is a country's exchange rate regime under which the government or Central bank ties the official exchange rate to another country's currency or to the price of gold. The purpose of a fixed exchange rate system is to maintain a country's currency value within a very narrow band.
Question 8
1 / -0

Point out a merit of fixed exchange rate

A
None

B
Ensures demand for the fixed exchange rate

C
Ensures stability of the fixed exchange rate

D
Ensures supply of the fixed exchange rate

Solution

Explanation:

Exchange rate stability, it is said, is necessary for orderly development of the international economy and rapid growth of world trade.

If the exchange rate is unstable or variable, the exporters will not be certain about the price they would receive for the goods to be expedited by them; the importers will not be certain about the price and the payments they have to make for their imports.
Question 9
1 / -0

Flexible exchange rate is determined by

A
Supply of foreign exchange

B
Market forces of demand and supply

C
Government

D
Demand for foreign exchange

Solution

Explanation:

It is determined by market forces because every currency area must decide what type of exchange rate arrangement to maintain. Between permanently fixed and completely flexible however, are heterogeneous approaches. They have different implications for the extent to which national authorities participate in foreign exchange markets.
Question 10
1 / -0

Flexible exchange rate is

A
Determined

B
Fixed

C
Ordered

D
Can’t say

Solution

Explanation:

flexible exchange-rate system is a monetary system that allows the exchange rate to be determined by supply and demand.As it variates according to market forces.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Balance of Payments Test - 1

Result

Balance of Payments Test - 1

Score

-

Rank

-

SHARING IS CARING

Question 1

price of a foreign good in terms of the domestic good

price of a foreign factor in terms of the domestic factor

price of a foreign currency in terms of the domestic currency

price of a foreign trade in terms of the domestic trade

Solution

Question 2

Exports

Donations given

Imports

Gifts

Solution

Question 3

US Dollars

Any currency other than the domestic currency

Any currency

Domestic currency

Question 4

Systematic record of all expenditures between the residents of a country and abroad

Systematic record of all economic transactions between the residents of a country

Systematic record of all receipts between the residents of a country and abroad

Systematic record of economic transactions between the residents of a country & abroad

Solution

Question 5

Brokerage of goods & services

Export of goods & services

Smuggle of goods & services

Import of goods & services

Question 6

That the imports of good are equal to the exports

That the imports of good are greater than the exports

None of the above

That the imports of good are less than the exports

Question 7

is fixed by the businesses in an economy

is fixed by the Government in an economy

is fixed by the foreign exchange market

is fixed by the anybody in an economy

Solution

Question 8

None

Ensures demand for the fixed exchange rate

Ensures stability of the fixed exchange rate

Ensures supply of the fixed exchange rate

Solution

Question 9

Supply of foreign exchange

Market forces of demand and supply

Government

Demand for foreign exchange

Solution

Question 10

Determined

Fixed

Ordered

Can’t say

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.