CBSE Class 12 Economics Balance of Payments VBQs

CBSE Class 12 Economics Balance of Payments VBQs read and download in pdf. Value Based Questions come in exams for Economics in Standard 12 and are easy to learn and helpful in scoring good marks. You can refer to more chapter wise VBQs for Class 12 Economics and also get latest topic wise very useful study material as per latest 2021 NCERT book for Class 12 Economics and all other subjects for free on Studiestoday designed as per latest Grade 12 CBSE, NCERT and KVS syllabus and examination pattern

CBSE Class 12 Economics Balance of Payments VBQs

1. What is the likely effect of depreciation or devaluation of a currency of the country‘s foreign trade?

Ans: It encourages exports from the country and discourages imports from rest of the world.

2. India is suffering from the problem of current Account deficit .How is it met or fianced?

Ans: Current Account deficit in BOP occurs when the sum of receipts of foreign Exchange on account of trade in visible and invisible goods is less than the sum of payments of foreign Exchange on account of trade in visible and invisible goods.

A CAD implies that a country has contracted to spend more foreign exchange than it has been able to earn during the year.

A CAD can be financed through various sources:

i) A country may use a part of its gold stocks and maka payments to foregners by means of gold.

ii) A country may draw upon the reserves of foreign currencies and foreign securities

iii) A country may borrow foreign exchange from different officials and private sources.

iv) It may mobilise foreign Exchange by attracting deposits from foreigners and investment of capital by foreigners.

3. If Inflation is higher in a country A than in country B and the exchange rate between two countries is fixed , what is likely to happen to trade balance between two countries?

Ans: If Inflation is higher in country A than in country B , and the exchange rate between the countries is fixed, the trade balance of country A will be deficit while that of country B will be surplus. In case of Inflation in country A and prices of country B remaining constant, imports of country A will rise or Exports of country A will decline . As a result trade balance of country A will be unfavourable and trade balance f country B will be favourable.

4. ‗A rise in BOP services in the economy can be considered a good source of supply of foreign currency ‗justify.

Ans: Indeed the post reform period, India has become the destination of global outsourcing. This has been mainly due to the cheaper cost wit reasonable degree of skill and accuracy of labour. There is a good inflow of supply of foreign exchange from the economy point of view,which proves beneficial.

Tags: 

 


Click for more Economics Study Material
More VBQs for Class 12 Economics
CBSE Class 12 Economics Balance of Payments VBQs
CBSE Class 12 Economics Forms Of Market VBQs
CBSE Class 12 Economics Forms Of Market VBQs Set A
CBSE Class 12 Economics Macro Budget VBQs
CBSE Class 12 Economics Value Based Questions Set A
CBSE Class 12 Economics Value Based Questions Set B
CBSE Class 12 Economics Value Based Questions Set C
CBSE Class 12 Economics VBQs In Hindi
Part A Microeconomics Chapter 1 Introduction to Micro Economics
CBSE Class 12 Economics Introduction To Micro Economics VBQs
CBSE Class 12 Economics Micro Economics VBQs
Part A Microeconomics Chapter 2 Theory of Consumer Behaviour
CBSE Class 12 Economics Consumers Behaviour And Demand VBQs
CBSE Class 12 Economics Consumers Equilibrium And Demand To Micro Economics VBQs
Part A Microeconomics Chapter 4 The Theory of the Firm under Perfect Competition
CBSE Class 12 Economics Producer Behaviour And Supply VBQs
CBSE Class 12 Economics Producer Behaviour And Supply VBQs Set A
Part B Macroeconomics Chapter 1 Introduction to Macroeconomics
CBSE Class 12 Economics Macro Economics VBQs
Part B Macroeconomics Chapter 2 National Income Accounting
CBSE Class 12 Economics National Income Accounting VBQs
Part B Macroeconomics Chapter 3 Money and Banking
CBSE Class 12 Economics Money And Banking VBQs
Part B Macroeconomics Chapter 4 Determination of Income and Employment
CBSE Class 12 Economics Determination of Income And Employment VBQs
CBSE Class 12 Economics National Income And Related Aggregates VBQs
Part B Macroeconomics Chapter 5 Government Budget and The Economy
CBSE Class 12 Economics Government Budget And The Economy VBQs
Part B Macroeconomics Chapter 6 Open Economy Macroeconomics
CBSE Class 12 Economics Government Open Economy Macroeconomic VBQs

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

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...

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...

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...

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...

All India Children Educational Audio Video Festival

The Central Institute of Educational Technology (CIET), a constituent unit of National Council of Educational Research and Training (NCERT), is inviting entries for the 26th All India Children’s Educational Audio Video Festival (AICEAVF). This festival showcases the...

Board Exams Date Sheet Class 10 and Class 12

Datesheet for CBSE Board Exams Class 10  (Scroll down for Class 12 Datesheet) Datesheet for CBSE Board Exams Class 12