30+ Balance of Payment and WTO MCQ’s | (Free Resource) Business Economics

11. After covering deficits on current a/c, excess capital a/c receipts are added to _______ .
a) IMF account
b) foreign exchange reserves
c) official transfers

12. Bank capital on India’s capital a/c includes __________ .
a) foreign exchange reserves
b) local withdrawal from NRI rupee deposits
c) foreign currency deposits – NRI deposits
d) official transfers

13. Private transfers on India’s current account include ________ .
a) foreign currency deposits
b) Local withdrawal from NRI rupee deposits
c) foreign exchange reserves

14. International trade increases the welfare of ________ .
a) all participating countries
b) only exporting countries
c) only importing countries
d) none of the above

15. WTO agreements incorporated ________ proposals.
a) Adam Smith
b) David Ricardo
c) John M. Keynes
d) Arthur Dunkel

16. _________ has given mandate to negotiate multilateral rules relating to services.
a) WTO
b) World Bank
c) IMF
d) ADB

17. Foreign direct investment is a part of _________ .
a) trade account
b) Capital account
c) current account
d) none of the above

18. External borrowing is treated as ________ flow.
a) Accommodative
b) Autonomous
c) invisible
d) none of the above

19. Foreign exchange reserves of India include _________ .
a) Special Drawing Rights
b) Foreign Currency reserves
c) Reserve Tranche of IMF
d) All of the above

20. The highest authority of WTO is _________ .
a) The Ministerial Conference
b) The Trade Policy Review Body
c) The General Council
d) The DisputeSettlement Body

Answers: 11)foreign exchange reserves 12)foreign currency deposits – NRI deposits 13)Local withdrawal from NRI rupee deposits 14)all participating countries 15)Arthur Dunkel 16)WTO 17)Capital account 18)Accommodative 19)All of the above 20)The Ministerial Conference