Q.1 Which of the following items is entered on the credit side of BOP account ?
(a) Investment from abroad
(b) Import of goods
(c) Gifts paid to foreigners
(d) Repayment of foreign loan
Q.2 Outflow of foreign exchange is recorded on the ____ sides.
Q.3 Transactions that take place to cover deficit or surplus are called ____ transactions.
(c) Current account
(d) Above the line
Q.4 When receipts of foreign exchange are less than payments of foreign exchange, then BOP is:
(d) None of these
Q.5 Foreign exchange transaction dependent on other foreign exchange transactions are called :
(a) Current account transaction
(b) Capital account transaction
(c) Autonomous transaction
(d) Accommodating transaction
Q.6 Dr. Manjeet Singh is an NRI, settled in Canada. He deposits $1 million with bank in India. This would be treated as a
(a) Credit entry in capital account.
(b) Credit entry in current account
(c) Debit entry in capital account
(d) Debit entry in current account
Q.7 External deficit of an economy refers to
(a) Fiscal deficit
(b) Current account deficit in BOP
(c) Revenue deficit
(d) Trade deficit
Q.8 If a country carries a deficit in its current account, such a deficit can be financed by
(a) Printing of new currency
(b) Raising the rate of corporate taxes.
(c) Restricting imports.
(d) Borrowing foreign exchange from an international source.
Q.9 Who out of the following is not included in “Residents” in BOP transactions ?
(b) Foreign military personnel
(c) Government agencies
Q.10 “Unilateral Transfers” are also known as :
(a) Bilateral Transfers
(b) One-way Transfers
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Q.11 Autonomous transactions take place on :
(a) Current Account only
(b) Capital Account only
(c) Both Current and Capital accounts
Q.12 Autonomous items are related to those transactions which :
(a) are determined by motive of profit
(b) are not concerned with the equilibrium status of BOP
(c) both (a) and (b)
(d) none of these
Q.13 Accommodating items are those items of BOP which:
(a) are not determined by considerations of profit
(b) are conditioned by the positive or negative BOP status
(c) lead to increase or decrease in official reserves with RBI
(d) all of these
Q.14 Cause of BOP imbalance relates to :
(a) autonomous items
(b) accommodating items
(c) both (a) and (b)
(d) neither (a) nor (b)
Q.15 If balance of trade indicates a surplus of Rs. 20,000 lakhs and the imports of goods is half of the exports of goods, then the value of exports will be:
(a) Rs. 20,000
(b) Rs. 10,000
(c) Rs. 30,000
(d) Rs. 40,000