A. financial account on the balance of payments.
B. balance of payments
C. balance of payments on current account
D. capital account of the balance of payments
Economics Mcqs
The situation when a country imports more than it exports is ?
A. a recession
B. a trade surplus
C. a trade deficit
D. an expansion.
If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
A. will remain the same
B. will decrease
C. will increase
D. could either increase of decrease
If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than if it were at peace
D. appreciate
If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?
A. fluctuate more than it would do otherwise
B. appreciate
C. depreciate
D. not be affected
If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
A. fluctuate more than it would do otherwise
B. appreciate
C. depreciate
D. not be affected
If the economy is at the peak of the business cycle, aggregate demand …. unemployment ……. inflation ……. and the current account of the balance of payments is likely to move towards …….?
A. rise; falls; rise; deficit
B. falls; rises; falls; surplus
C. falls; falls; falls; surplus
D. is static; low; rises; deficit
If the economy is in the though phase of the business cycle, aggregate demand …. unemployment …… inflation …… and the current account of the balance of payments is likely to move towards ……..?
A. falls; falls; falls; surplus
B. falls; rises; falls; surplus
C. is static; low; rises; deficit
D. rises; falls; rises; deficit
When the $/£ exchange rate rises the pound ….. and when the $/£ rates falls the pound ……..?
A. depreciates, appreciates
B. revalues, devalues
C. appreciates, depreciates
D. becomes more expensive becomes cheaper
In a fixed exchange rate regime, the central the exchange rate ?
A. selling, increase
B. buying reduce
C. selling, reduce
D. buying increase
E. A and B
F. C and D