International Trade & Finance-Balance of Payment Accounts [AP (Advanced Placement) Macroeconomics]: Questions 1 - 3 of 33

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Question 1

Balance of Payment Accounts
Balance of Trade

Appeared in Year: 2014 (NET)

Question

MCQ▾

If the demand of the domestic consumers is infinitely elastic and the supply of the foreign producer is perfectly inelastic, then the whole of the tariff will (June)

Choices

Choice (5)Response

a.

Be equally shared by the domestic consumers and the foreign producer

b.

Be paid by the domestic consumers

c.

Yield neither revenue nor protection to either of them

d.

Be paid by the foreign producer

e.

All of the above

Question 2

Balance of Payment Accounts
Balance of Trade

Appeared in Year: 2017 (NET)

Question

MCQ▾

Consider the following items in the balance of payment in India:

I. NRI deposits

II. Remittances

Which among the above is/are a part of the capital account of balance of payments? Answers from the codes below:

Choices

Choice (5)Response

a.

I and II above

b.

Only I above

c.

Only II above

d.

Neither I nor II above

e.

All of the above

Question 3

Balance of Payment Accounts
Balance of Trade

Appeared in Year: 2013 (NET)

Question

MCQ▾

Which of the following is true with respect to the monetary approach to the balance of payments? (December)

Choices

Choice (5)Response

a.

A balance of payments surplus results from an excess demand for money.

b.

A balance of payments deficit results from an excess supply of money in the nation.

c.

Balance of payments disequilibrium are automatically corrected in the long run.

d.

All a., b. and c. are correct

e.

None of the above

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