Open Economy Macroeconomics MCQs Mock Test of Class 12th Economics

Question 1. The reason for the imbalance in the balance of payment is:

Question 2. Structure of balance of payment includes which account:

Question 3. Balance of trade means:

Question 4. Measures to improve the adverse balance of payment includes:

Question 5. Foreign Exchange Rate is determined by:

Question 6. Types of Foreign Exchange Market are:

Question 7. The price of one currency in terms of another is known as _____

Question 8. The market where the national currencies are traded for one another is known as ________

Question 9. Increase in the value of foreign commodities is known as _________

Question 10. Decrease in the value the foreign commodities is known as _________

Question 11. What is the cause of the devaluation of any country’s currency?

Question 12. The operation of daily nature in the foreign exchange market is known as ________

Question 13. The operation of future delivery in the foreign exchange market is known as ________

Question 14. Hybrid in management of fixed and flexible exchange rate is known as ________

Question 15. When was the gold standard abandoned?

Question 16. Trade of visible items between the countries is known as ________

Question 17. When the import and export of visible items are equal, the situation is known as _______

Question 18. When there is a favourable balance of trade?

Question 19. Foreign exchange is determined by:

Question 20. The forms of foreign exchange market is/are:

Question 21. The foreign exchange rate is determined by:

Question 22. By exchange rate we mean:

Question 23. When there is unfavourable balance of trade?

Question 24. The trade of visible and invisible items is known as _________

Question 25. Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:

Question 26. Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:

Question 27. Which one is the king of the exchange rate?

Question 28. Which of the following is true?

Question 29. Which one is a kind of fixed exchange rate?

Question 30. Which one is a merit of the fixed exchange rate?

Question 32. Which one is a merit of the flexible exchange rate?

Question 31. Which one is a demerit of the fixed exchange rate?

Question 33. Which one is a demerit of the flexible exchange rate?

Question 34. Which one is a source of the demand for foreign exchange?

Question 35. Balance of Trade =?

Question 36. Which items are included in the Balance of Payments?

Question 37. Which one is the visible item of Balance of Payments?

Question 38. Which one is the invisible item of Balance of Payment?

Question 39. Which one is the feature of Balance of Payment?

Question 40. Which account is included in the composition of the Balance of Payments?

Question 41. Which one is the item of the Current Account?

Question 42. Which one is the item of Capital Account?

Question 43. The component(s) of Balance of Payment is/are:

Question 44. Which items are included in the balance of trade?

Question 45. Balance of Trade means:

Question 46. When there is a favourable balance of trade?

Question 47. The trade of visible and invisible items is known as ………………..

Question 48. Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called:

Question 49. What is the cause of the devaluation of any country’s currency?

Question 50. The operation of daily nature in the foreign exchange market is known as