MCQ Chapter 12 Open Economy Macroeconomics Class 12 Economics

Please refer to Open Economy Macroeconomics MCQ Questions Class 12 Economics below. These MCQ questions for Class 12 Economics with answers have been designed as per the latest NCERT, CBSE books, and syllabus issued for the current academic year. These objective questions for Open Economy Macroeconomics will help you to prepare for the exams and get more marks.

Open Economy Macroeconomics MCQ Questions Class 12 Economics

Please see solved MCQ Questions for Open Economy Macroeconomics in Class 12 Economics. All questions and answers have been prepared by expert faculty of standard 12 based on the latest examination guidelines.

MCQ Questions Class 12 Economics Open Economy Macroeconomics

Question: The exchange rate at which demand for foreign currency becomes equal to its supply called 
a) Equal rate of exchange 
b) Unequal rate of exchange 
c) Equilibrium rate 
d) All of these

Question: Spot market is that market where in :
a) Only spot or current transactions are handled 
b) Foreign exchange transactions are meant for future delivery 
c) Exchange rate is determined instantly 
d) Both (a) and (c)

Question: Accommodating items are those items of Bop which :
a) Are not determined by profit motive
b) Are conditioned by the positive or negative BoP status
c) Deal with capital transfers only
d) Both (a) and (b)

Question: Disequilibrium in balance of payments means:
a) Surplus balance of payments 
b) Deficit balance of payments
c) Both (a) and (b) 
d) None of these

Question: What is the relationship between supply of foreign exchange and exchange rate? 
a) Inverse
b) Direct 
c) One to one 
d) No to relationship

Question: BoP is measured as :
a) Difference between visible items of exports and imports 
b) Difference between invisible items of exports and imports
c) Difference between external and internal flow of gold 
d) Difference between all receipts of foreign exchange and payments of foreign exchange

Question: Balance of trade is measured as :
a) Difference between import and export goods 
b) Difference between import and export services 
c) Difference between import and export of capital 
d) Difference between all export and all imports

Question: In which of the following categories are economic transactions of balance of trade recorded ? 
a) Visible items 
b) Invisible items
c) Capital transfers 
d) All the above

Question: Which of the following transactions are recorded in the current account of the balance of payments ?
a) Import and export of goods and services 
b) Transfers from one country to the other
c) Both (a) and (b) 
d) None of these

Question: Which of the following items relate to BoP which :
a) Foreign investment
b) Loans
c) NRI remittance
d) All of these

Question: 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

Question: According to adjustable peg system (or Bretton Woods System ) of Exchange Rate :
a) Different currencies were pegged to one currency (US dollar) 
b) US dollar was assigned gold value at a fixed price 
c) Parity between two currencies was determined by the quantity of gold contained in them 
d) All of these

Question: What is the relationship between demand for foreign exchange and exchange rate ?
a) Inverse
b) Direct
c) One to one
d) No to relationship

Question: If balance of trade is (-) Rs.600 crore and value of exports is rs.500 crore then the value of imports will be : 
a) Rs.1,300 crore
b) Rs. 300 crore 
c) Rs.1,100 crore 
d) Rs. 1,200 crore   

Question: Forward market is that market which :
a) Handled transactions of foreign exchange meant for future delivery 
b) Handled current transactions
c) Handled current as well as future transactions
d) None of these

Question: If Rs. 150 ate required to buy $ 2, instead of Rs.100 earlier, then :
a) Domestic currency has depreciated 
b) Domestic currency has appreciated 
c) Rupee value of import bill will increase 
d) Both (a) and (c)

Question. Balance of trade is measured as:
(a) Difference between import and export of the goods
(b) Difference between import and export of the services
(c) Difference between import and export of the capital
(d) Difference between all import and all export

Question. Cause of Bop imbalance relates to:
(a) Autonomous items
(b) Accommodating items
(c) Both (a) & (b)
(d) Neither (a) nor (b) 

Fil lIn The Blanks

Question. BoP surplus leads to an/a ________in official reserves. (increase/decrease)   

Question.___________= Compensation of employees + Investment income.(Factor income /Transfer income)   

True/ False

Question. Financial transactions relate to international sale and purchase of real assets.(true/false)  

Question. Current account records all payments to rest of the world as debit.(True/False)