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.



Click for more Economics Study Material

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

Score well in Class 12 English Boards Exam

12th Board exams are an important part of students' lives. The marks obtained in the board exam decide the college in which one can study. In class 12 the syllabus of each and every subject increases vastly and it is difficult to cover up every point. In English also...

MCQ Question based CBSE examination

For 2021-22 CBSE has launched MCQ question-based examination for Term 1 & Term 2 board examinations. The entire syllabus has been divided into two parts each including 50% of the entire syllabus. To score well, students must practice as per the new CBSE term-wise...

CBSE Board Examination Scheme of Assessment 2021 2022

A. Academic session to be divided into 2 Terms with approximately 50% syllabus in each term: The syllabus for the Academic session 2021-22 will be divided into 2 terms by following a systematic approach by looking into the interconnectivity of concepts and topics by...

CBSE Class 10 Revised Syllabus

Last year CBSE had to reduce the syllabus because of the pandemic situation but it was not very effective because there were no examinations. This year to avoid any confusion and conflict, CBSE has decided to reduce the syllabus into term 1 and term 2. 50 percent of...

Moderation of Marks Class 11 and 12 Board Exams

The portal for moderation and finalization of results for Class-12 is being opened from 16.07.2021 to 22.07.2021. As Board has to declare the result latest by 31.07.2021, schools have been requested to follow the schedule strictly and complete the moderation within...

How To Solve Unseen Passages In English

Unseen passages may contain one or many paragraphs. This is one of the important yet easy parts for a student to get marks. Students should thoroughly study and understand the passage to answer the related questions. The unseen passages are there just to test the...

Studies Today