CBSE Class 12 Economics Exchange Rate and Balance Of Payments MCQs

CBSE Class 12 Economics Exchange Rate and Balance Of Payments MCQs with answers available in Pdf for free download. The MCQ Questions for Class 12 Economics with answers have been prepared as per the latest syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. Multiple Choice Questions are an important part of Term 1 and Term 2 exams for Grade 12 Economics and if practiced properly can help you to get higher marks. Refer to more Chapter-wise MCQs for NCERT Class 12 Economics and also download more latest study material for all subjects

Exchange Rate and Balance Of Payments Class 12 Economics MCQ

Class 12 Economics students should refer to the following multiple-choice questions with answers for Exchange Rate and Balance Of Payments in standard 12. These MCQ questions with answers for Grade 12 Economics will come in exams and help you to score good marks

Exchange Rate and Balance Of Payments MCQ Questions Class 12 Economics with Answers

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

Answer :  Equilibrium rate

 

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

Answer :  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

Answer :  Inverse          

 

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

Answer :  Direct

 

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)

Answer :  Both (a) and (c)

 

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

Answer :  Handled transactions of foreign exchange meant for future delivery

 

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)

Answer :  Both (a) and (c)

 

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

Answer :  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

Answer :  Difference between import and export goods

 

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

Answer :  Visible items 

 

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

Answer :  Both (a) and (b) 

 

Question :  Which of the following items relate to BoP which :

  • a) Foreign investment 
  • b) Loans
  • c) NRI remittance
  • d) All of these

Answer :  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

Answer :  Both (a) and (b)

 

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)

Answer :  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

Answer :  Both (a) and (b) 

 

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

Answer :  Rs.1,100 crore 

 

Tags: 

 


Click for more Economics Study Material
Part A Microeconomics Chapter 1 Introduction to Micro Economics
CBSE Class 12 Economics Microeconomics MCQs
Part A Microeconomics Chapter 2 Theory of Consumer Behaviour
CBSE Class 12 Economics Consumers Equilibrium and Demand MCQs
Part A Microeconomics Chapter 3 Production and Costs
CBSE Class 12 Economics Cost and Revenue MCQs
CBSE Class 12 Economics Producer Behavior and Supply MCQs
Part A Microeconomics Chapter 4 The Theory of Firm Under Perfect Competition
CBSE Class 12 Economics The Theory of Firm Under Perfect Competition MCQs
Part A Microeconomics Chapter 5 Market Equilibrium
CBSE Class 12 Economics Forms of Market and Price Determination MCQs
Part A Microeconomics Chapter 6 Non Competitive Markets
CBSE Class 12 Economics Non Competitive Markets MCQs
Part B Macroeconomics Chapter 1 Introduction to Macroeconomics
CBSE Class 12 Economics Macroeconomics MCQs
Part B Macroeconomics Chapter 2 National Income Accounting
CBSE Class 12 Economics National Income Accounting Environmental Issues MCQ
CBSE Class 12 Economics National Income and Related Aggregates MCQs
Part B Macroeconomics Chapter 3 Money and Banking
CBSE Class 12 Economics Money and Banking MCQs
Part B Macroeconomics Chapter 4 Determination of Income and Employment
CBSE Class 12 Economics Determination of Income and Employment MCQs
Part B Macroeconomics Chapter 5 Government Budget and Economy
CBSE Class 12 Economics Government Budget and The Economy MCQs
Part B Macroeconomics Chapter 6 Open Economy Macroeconomics
CBSE Class 12 Economics Exchange Rate and Balance Of Payments MCQs
CBSE Class 12 Economics Open Economy Macroeconomics MCQs

Latest NCERT & CBSE News

Read the latest news and announcements from NCERT and CBSE below. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. Keep yourself updated with all latest news and also read articles from teachers which will help you to improve your studies, increase motivation level and promote faster learning

Online courses for classes XI and XII offered by NCERT

Ministry of Education (MoE), Government of India has launched a platform for offering Massive Open Online Courses (MOOCs) that is popularly known as SWAYAM (Study Webs of Active learning for Young Aspiring Minds) on 9 th July, 2017. NCERT now offers online courses for...

Pariksha Pe Charcha 2022

The 5th edition of Pariskhas Pe Charcha the unique interactive program of Hon’ble Prime Minister with students teaches and parents will be held through virtual mode in February, 2022. In order to select participants who will be featured in Pariksha Pe Charcha programme...

CBSE Science Challenge 2021 22

Science is inexplicably linked with our lives and helps us to understand the world around us better. Scientific and technological developments contribute to progress and help improve our standards of living. By engaging with this subject, students learn to think, solve...

Surya Namaskar Project on 75th Anniversary of Independence Day

Ministry of Education, Govt of India vide letter No. F.No. 12-5/2020-IS-4 dated 16.12.2021 has intimated that under the banner Azadi ka Amrit Mahotsav the National Yogasanasports Federation has decided to run a project of 750 million Surya Namaskar from 01 January 2022...

National Youth Day and Birth Anniversary of Swami Vivekananda

Ministry of Education, Govt. of India vide D.O No. 12-4/2021-IS.4 dated 04.01.2022 intimated that 12 January 2022 will be celebrated as “National Youth Day” and “Birth Anniversary of Swami Vivekananda”.   All Schools affiliated to CBSE may celebrate 12 January 2022 as...

Heritage India Quiz 2021 2022

CBSE Heritage India Quiz is conducted every year to raise the awareness about the preserving human heritage, diversity and vulnerability of the India's built monuments and heritage sites. It is an attempt of the Board to motivate the future generations of this country...