R4RIN – MCQs, Mock Tests | Economics Economics Balance of Payments

Balance of payments of a country includes:

1. Current account
2. Moentary account
3. Capital account
4. All of above

✅ Correct Answer: 4

Balance of payments of a country includes:

1. Balance of trade
2. Capital receipts and payments
3. Saving and investment account
4. Both (a) and (b)

✅ Correct Answer: 4

Final balance of payments of a country is:

1. Always balanced
2. Always deficit
3. Always surplus
4. Fluctuates

✅ Correct Answer: 1

Balance of payments of a country has parts:

1. 2
2. 3
3. 4
4. 5

✅ Correct Answer: 2

Exchange rate for currencies is determined by supply and demand in system of:

1. Fixed exchange rate
2. Flexible
3. Constant
4. Govt. regulated

✅ Correct Answer: 2

If GNP of Pakistan rises it will encourage:

1. Exports
2. Imports
3. Both
4. None of these

✅ Correct Answer: 3

A country that does not trade with other countries is called an economy:

1. Open
2. Closed
3. Independent
4. None of these

✅ Correct Answer: 2

If Japanese import more goods from Pakistan (other things remain same)

1. Our balance of payments will improve
2. Japan s BOP will deteriorate
3. Our BOP will deteriorate
4. (a) and (b) of above

✅ Correct Answer: 4

Invisible items in balance of payments include:

1. Foreign remittances
2. Income from tourists
3. Internet charges
4. All the three

✅ Correct Answer: 4

Pakistan follows the policy of:

1. Fixed exchange rate
2. Flexible exchange rate
3. Controlled exchange rate
4. Increasing exchange rate

✅ Correct Answer: 2

It helps countries to meet deficit in balance of payments:

1. IMF
2. WTO
3. World Bank
4. UNO

✅ Correct Answer: 1

The balance of payments of country means

1. Balance in income and expenditure of govt.
2. Balance in demand and supply of money
3. Balance in export and import earnings
4. The annual account of foreign trade

✅ Correct Answer: 4

Pakistan s exports are part of our GDP:

1. 5%
2. 15%
3. 25%
4. 35%

✅ Correct Answer: 2

What would cause a country s exchange rate to fall:

1. An increased demand for its exports
2. An increased demand for its imports
3. An increased in flow of capital
4. None of the above

✅ Correct Answer: 2

Which of the following must always balance:

1. Balance of visible trade
2. Balance of invisible trade
3. Balance on the current account
4. Balance of payments

✅ Correct Answer: 4

What will be expected result if the value of rupee falls against dollar?

1. The price of Pakistani goods in USA will rise
2. The price of American goods in USA will fall
3. The price of American goods in USA with fall
4. The price of American goods in Pakistan will rise

✅ Correct Answer: 4

If Toyota Company establishes a factory in Pakistan this will be recroded in balance of payments in the section:

1. Capital account
2. Visible balance
3. Invisible balance
4. Official financing

✅ Correct Answer: 1

If CDA (Capital Development Authority Islamabad) gets a loan from World Bank for roads it will be recorded in the balance of payments in section:

1. Capital account
2. Visible balance
3. Invisible balance
4. Official financing

✅ Correct Answer: 1

Which of the following must always balance?

1. Balance of visible trade
2. Balance of invisible trade
3. Balance on the current balance
4. Balance of payments

✅ Correct Answer: 4

Which of the following compares the average price of exports to average price of imports?

1. The balance of payments
2. The balance of trade
3. The exchange rate
4. The terms of trade

✅ Correct Answer: 4

IMF represents

1. International Monetary Fund
2. International Money Flow
3. International Money Forum
4. International Monetary Finance

✅ Correct Answer: 1

Flexible exchange rate system has the advantage:

1. Automatic adjustment of balance of payments
2. Easy to borrow from world bank
3. Encourages exports
4. None of the above

✅ Correct Answer: 1

Fixed exchange rate system has the advantage:

1. Automatic adjustment of balance of payments
2. Increases govt. control over foreign trade
3. Discourages unnecessary speculation about future trade deals
4. (b) and (c) of above

✅ Correct Answer: 4

Export of goods is called trade in:

1. Visible goods
2. Invisible goods
3. Basic goods
4. Real goods

✅ Correct Answer: 1

Export of goods is called trade in:

1. Visible goods
2. Invisible goods
3. Basic goods
4. Non-real goods

✅ Correct Answer: 2

Visible goods are recorded in this part of balance of payments account:

1. Current account
2. Capital account
3. Govt. account
4. Official account

✅ Correct Answer: 1

Visible goods are recorded in this part of balance of payments account:

1. Current account
2. Capital account
3. Govt. account
4. Official account

✅ Correct Answer: 2

Visible imports include:

1. Remittance
2. Machinery
3. Computer software
4. Transport cost

✅ Correct Answer: 2

If balance of payments of country is in deficit, then:

1. Current account will be in deficit
2. Country can increase money supply to meet deficit
3. The country can borrow from abroad
4. (a) and (c) of above

✅ Correct Answer: 4

The balance of payments account of a country includes:

1. Official transfer of foreign exchange
2. Smuggling transactions
3. Loans and aid
4. Both a and c of the above

✅ Correct Answer: 4

Foreign exchange reserves increase if:

1. Govt. increases taxes
2. Exports increase imports remain the same
3. Imports increase exports remain the same
4. (a) and (b) of above

✅ Correct Answer: 2

The receipts and payments for goods exported and imported are counted in:

1. Trade account
2. Capital account
3. Current account
4. Monetary account

✅ Correct Answer: 1

IMF has given loan to Pakistan. It will improve Pakistan s:

1. Current account
2. Capital account
3. Overall balance of payments
4. (b) and (c) of above

✅ Correct Answer: 4

IMF gives loans:

1. To fill gap in balance of payments
2. To fill gap in government budget
3. To decrease inflation
4. To increse employment opportunities

✅ Correct Answer: 1

In capitalism there is sovereignty of:

1. Producer
2. Consumer
3. Government
4. Businessmen

✅ Correct Answer: 2

Basic principle of Islamic economic system is:

1. Equality
2. Justice
3. High profit
4. Less consumption

✅ Correct Answer: 2

In capitalistic system, prices of goods are determined by:

1. Sellers
2. Buyers
3. Government
4. Forces of demand and supply

✅ Correct Answer: 4

In socialistic system, prices of goods are determined by:

1. Sellers
2. Buyers
3. Government
4. Forces of demand and supply

✅ Correct Answer: 3

In working of markets, the Islamic system is nearer to:

1. Capitalism
2. Socialism
3. Mixed economy
4. None of the above

✅ Correct Answer: 3

Which is the basic economic problem, which is common in all economic systems:

1. Allocation of scarce resources
2. Elimination of inflation
3. To increase exports
4. To reduce taxation

✅ Correct Answer: 1

In a country like Pakistan:

1. All economic decisions are made through markets
2. There is no planning
3. Govt. owns most of the means of production
4. There is reliance on market

✅ Correct Answer: 4

In Islamic economic system:

1. All economic decisions are made through markets
2. There is no planning
3. Govt. owns most of the means of production
4. There is reliance on market

✅ Correct Answer: 4

Capitalism is defined as an economic system where there is:

1. A lack of planning
2. A reliance over free market
3. Private ownership of property
4. All of the above

✅ Correct Answer: 4

Pakistan having a:

1. Mixed economy
2. Capitalistic economy
3. Socialistic economy
4. Islamic economy

✅ Correct Answer: 2