Open Economy Macrcoeconomics- Assertion and Reason Type Questions - Free
MCQ Practice Test & Solutions: Test: Open Economy Macrcoeconomics- Assertion and Reason Type Questions (8 Questions)
You can prepare effectively for Grade 12 Economics for Grade 12 with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Open Economy Macrcoeconomics- Assertion and Reason Type Questions". These 8 questions have been designed by the experts with the latest curriculum of Grade 12 2026, to help you master the concept.
Test Highlights:
- - Format: Multiple Choice Questions (MCQ)
- - Duration: 16 minutes
- - Number of Questions: 8
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Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Autonomous items cause movements of goods and services across the borders.
Reason (R): Accommodating items to clear the deficit or surplus in the Balance of Payment.
Detailed Solution: Question 1
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Import of machinery is reflected in the current account of balance of payments.
Reason (R): Export and import of goods and invisibles are recorded in the current account of balance of payments.
Detailed Solution: Question 2
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Current account is a part of Balance of Trade.
Reason (R): Current account records exports and imports of goods and services and transfer payments.
Detailed Solution: Question 3
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): The level of aggregate demand tends to rise.
Reason (R): Exports are more than imports.
Detailed Solution: Question 4
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): In case of currency appreciation, less rupees are to be paid to buy one US dollar.
Reason (R): Currency appreciation leads to increase in value of domestic currency in reference to foreign currency. So, less is needed to pay for the same amount.
Detailed Solution: Question 5
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Export of goods and services from India to the US would mean outflow of foreign exchange from India.
Reason (R): Foreign exchange in terms of receipts for exports flows from the US to India.
Detailed Solution: Question 6
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): In order to restore the value of depreciating domestic currency, the Central Bank sells the US dollars in the international money market.
Reason (R): By selling US dollars, the supply of dollars will increase which will reduce the price of dollars.
Detailed Solution: Question 7
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): When in order to buy 1 US dollar ₹ 80 are needed instead of ₹ 75, domestic currency shows depreciation.
Reason (R) : Depreciation of domestic currency refers to fall in the value of domestic currency in terms of foreign currency caused by rise in foreign exchange rate in the foreign exchange market.
Detailed Solution: Question 8
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