Question 1

Restrictions on the use of foreign exchange by the Central bank are called -------.&#10;A)exchange controls&#10;B)Official transfers&#10;C)Foreign exchange reserves&#10;D)LAF

Accepted Answer

Exchange controls are restrictions imposed by a government on the purchase and sale of foreign currencies by residents or on the purchase and sale of local currency by nonresidents. These are typically implemented by the central bank to manage the country's balance of payments or the value of its currency.

Question 2

-------are duties levied on imports.&#10;A)Tariffs&#10;B)Deflation&#10;C)Exchange control&#10;D)Qoutas

Accepted Answer

Tariffs are taxes imposed by a government on goods and services imported from other countries, used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers.

Question 3

Restrictions imposed on the quantity of imports is -------.&#10;A)Surplus&#10;B)Quotas&#10;C)Balance&#10;D)Tariffs

Accepted Answer

Quotas are restrictions imposed on the quantity of imports, limiting the amount of goods that can be imported into a country.

Question 4

Balance of payment always -------.&#10;A)Deficit&#10;B)balances&#10;C)Surplus&#10;D)Equal

Accepted Answer

The balance of payments always balances because it records all financial transactions made between consumers, businesses, and the government in one country with others. The balance of payments is a double-entry accounting system that tracks both credits and debits.

Question 5

-------term long run disequilibrium as fundamental disequilibrium.&#10;A)Tariff&#10;B)IMF&#10;C)trade&#10;D)WTO

Accepted Answer

The International Monetary Fund (IMF) uses the term "fundamental disequilibrium" to describe a situation where a country's balance of payments is imbalanced in a way that cannot be corrected without adjusting the exchange rate or implementing structural economic reforms.

Question 6

WTO replaced -------in 1995.&#10;A)GATT&#10;B)WTO&#10;C)UN&#10;D)UNESCO&#10;

Accepted Answer

The World Trade Organization (WTO) replaced the General Agreement on Tariffs and Trade (GATT) in 1995 to regulate international trade.

Question 7

TRIPs deals with -------.&#10;A)intellectual property rights&#10;B)Foreign investment&#10;C)Foreign aid&#10;D)Agriculture

Accepted Answer

TRIPs (Trade-Related Aspects of Intellectual Property Rights) is an international legal agreement between all the member nations of the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP) regulation.

Question 8

Protection is made available for -------years for patents.&#10;A)20&#10;B)30&#10;C)10&#10;D)40

Accepted Answer

Patents typically provide protection for 20 years from the filing date of the application, allowing inventors exclusive rights to their inventions for this period.

Question 9

The terms of -------is 50 years.&#10;A)copyright&#10;B)Services&#10;C)patent&#10;D)Trademarks

Accepted Answer

Copyright typically lasts for the life of the author plus an additional 50 years in many jurisdictions, though this can vary.

Question 10

The current account of balance of payment does not include :&#10;A)Balance of visible trade&#10;B)Import of services&#10;C)Unilateral services&#10;D)Foreign investment

Accepted Answer

Foreign investment is not included in the current account of the balance of payments; it is recorded in the financial account, as it deals with investments and financial transactions rather than trade in goods and services or unilateral transfers.

Question 11

Pick out the item which is not a part of unilateral transfers.&#10;A)Gifts&#10;B)Grants&#10;C)Loan&#10;D)Donation

Accepted Answer

The answer of Pick out the item which is not...

Question 12

Donations, grants, gifts and such other payments which do not have counter obligations are known as :&#10;A)Grants&#10;B)Aid&#10;C)Unilateral flows&#10;D)Bilateral flow

Accepted Answer

The answer of Donations, grants, gifts and such other payments...

Question 13

If the deficits in a country's BOP persists for a long time it is a case of :&#10;A)Structural disequilibrium&#10;B)Fundamental disequilibrium&#10;C)Cyclical disequilibrium&#10;D)temporary disequilibrium

Accepted Answer

The answer of If the deficits in a country's BOP...

Question 14

Disequilibrium in the BOP caused by changes in the demand or supply relations of exports or imports or both refer to :&#10;A)Cyclical disequilibrium&#10;B)Short Run disequilibrium&#10;C)Structural disequilibrium&#10;D)Fundamental disequilibrium

Accepted Answer

The answer of Disequilibrium in the BOP caused by changes...

Question 15

Which of the following is not a non monetary measure to correct the disequilibrium in BOP ?&#10;A)Tariff&#10;B)Import quotas&#10;C)Export promotion&#10;D)Devaluation

Accepted Answer

The answer of Which of the following is not a...

Question 16

TRIMS include measures to :&#10;A)Treat foreign investment on par with domestic income&#10;B)Remove quantitative restrictions&#10;C)Treat foreign investment on par with domestic investment&#10;D)Remove qualitative retrictions

Accepted Answer

The answer of TRIMS include measures to :&#10;A)Treat foreign investment...

Question 17

Pick out the one which is not true of GATS :&#10;A)Services and service activities are covered under GATS&#10;B)National treatment to members&#10;C)No market access to service supplier's&#10;D)No discrimination between service suppliers

Accepted Answer

The answer of Pick out the one which is not...

Question 18

Pick out the feature which is not true of the Agreement on Agriculture.&#10;A)Reduce domestic subsidies&#10;B)reduce export subsidies&#10;C)Increase tariffs&#10;D)Increase trade in agricultural goods

Accepted Answer

The answer of Pick out the feature which is not...

Question 19

Gifts and charities account are also known as :&#10;A)Export&#10;B)Unilateral transfer&#10;C)Import&#10;D)Long-term borrowing

Accepted Answer

The answer of Gifts and charities account are also known...

Question 20

In BOP, total receipts must be equal to total -------.&#10;A)payment&#10;B)deficit&#10;C)income&#10;D)revenue

Accepted Answer

The answer of In BOP, total receipts must be equal...

Question 21

Reducing the value of domestic currency in term of foreign currency :&#10;A)Deflation&#10;B)Exchange control&#10;C)Tariff&#10;D)Devaluation

Accepted Answer

The answer of Reducing the value of domestic currency in...

Question 22

The current account in the balance of payments -------.&#10;A)is a total of all the visible items of trade&#10;B)includes merchandise trade and services&#10;C)always shows a surplus&#10;D)includes autonomous and accommodating flows

Accepted Answer

The answer of The current account in the balance of...

Question 23

Good performance on -------has helped India to improve its current account balance in recent times.&#10;A)trade account&#10;B)invisible account&#10;C)Capital account&#10;D)reserves account

Accepted Answer

The answer of Good performance on -------has helped India to...

Question 24

After covering deficits on current account, excess capital account receipts are added to -------.&#10;A)IMF account&#10;B)Official transfers&#10;C)Foreign exchange reserves&#10;D)Bank capital

Accepted Answer

The answer of After covering deficits on current account, excess...

Deck 10: Balance of Payment and International Trade