{"id":17358,"date":"2022-04-04T12:13:04","date_gmt":"2022-04-04T06:43:04","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=17358"},"modified":"2026-02-09T21:32:39","modified_gmt":"2026-02-09T16:02:39","slug":"balance-of-payment-and-wto-mcqs","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/balance-of-payment-and-wto-mcqs\/","title":{"rendered":"30+ Balance of Payment and WTO MCQ&#8217;s | (Free Resource) Business Economics"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-text-align-center\">Balance of Payment and WTO MCQ<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/business-economics-mcq\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>MCQs on other topics of Business Economics <\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" data-type=\"URL\" data-id=\"https:\/\/www.icsi.edu\/media\/webmodules\/modelquestionpaper\/CMA-MCQ%20100.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Cost Accounting MCQs pdf <\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p><strong>1. Unilateral transfers _________ . <br><\/strong>a) are unrequited transfers<br>b) are one-way transfers<br>c) include gifts\/remittances<br>d) all of the above<\/p>\n\n\n\n<p><strong>2. Unilateral flows in the balance of payment account refer to ________ .<br><\/strong>a) capital flows<br>b) Gifts and Grants<br>c) visible goods flows<br>d) invisible flow of services<\/p>\n\n\n\n<p><strong>3. The full form of TRIMs is _______ . <br><\/strong>a) Trade Related Investment Measures<br>b) trade related insurance measures<br>c) trade related investment methods<\/p>\n\n\n\n<p><strong>4. WTO was set up on _________ . <br><\/strong>a) 1st January 1995<br>b) 1st June 1985<br>c) 31st July 1995<br>d) 1st January 2000<\/p>\n\n\n\n<p><strong>5. GATS stands for _______ . <br><\/strong>a) General Agreement on Tariff and Services<br>b) General Agreement on Transport and Services<br>c) General Agreement on Trade in Services<\/p>\n\n\n\n<p><strong>6. Autonomous capital flows ______ other items in the balance of payments. <br><\/strong>a) depend on<br>b) are related to<br>c) are independent of<br>d) have impact on<\/p>\n\n\n\n<p><strong>7. The current account in the balance of payments _________ . <br><\/strong>a) includes merchandise trade and services<br>b) is a total of all the visible items of trade<br>c) includes borrowings<br>d) includes autonomous and accommodating flows<\/p>\n\n\n\n<p><strong>8. A deficit in India\u2019s Balance of Trade in recent times is due to ________ .<br><\/strong>a) rise in price of crude oil<br>b) increase in imports<br>c) reduction in exports<br>d) all of the above<\/p>\n\n\n\n<p><strong>9. Good performance on _________ has helped India to reduce its current a\/c balance deficit in recent times. <br><\/strong>a) invisible account<br>b) trade account<br>c) capital account<\/p>\n\n\n\n<p><strong>10. There is an increase in _________ on India\u2019s capital a\/c in recent times.<br><\/strong>a) non-debt foreign investment flows<br>b) private transfers<br>c) private remittances<br>d) unilateral receipts<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">1)all of the above  2)Gifts and Grants  3)Trade Related Investment Measures 4)1st January 1995<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 5)General Agreement on Trade in Services  6)are independent of  7)includes merchandise trade and services   8)Mixing quota  9)invisible account<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 10)non-debt foreign investment flows<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Balance-of-Payment-and-WTO-MCQ-1024x576.webp\" alt=\"Balance of Payment and WTO MCQ\" class=\"wp-image-17447 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Balance-of-Payment-and-WTO-MCQ-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Balance-of-Payment-and-WTO-MCQ-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Balance-of-Payment-and-WTO-MCQ-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Balance-of-Payment-and-WTO-MCQ-1536x864.webp 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/04\/Balance-of-Payment-and-WTO-MCQ.webp 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">Balance of Payment and WTO MCQ<\/figcaption><\/figure>\n\n\n\n<p><strong>11. After covering deficits on current a\/c, excess capital a\/c receipts are added to _______ .<br><\/strong>a) IMF account<br>b) foreign exchange reserves<br>c) official transfers<\/p>\n\n\n\n<p><strong>12. Bank capital on India\u2019s capital a\/c includes __________ .<br><\/strong>a) foreign exchange reserves<br>b) local withdrawal from NRI rupee deposits<br>c) foreign currency deposits \u2013 NRI deposits<br>d) official transfers<\/p>\n\n\n\n<p><strong>13. Private transfers on India\u2019s current account include ________ . <br><\/strong>a) foreign currency deposits<br>b) Local withdrawal from NRI rupee deposits<br>c) foreign exchange reserves<\/p>\n\n\n\n<p><strong>14. International trade increases the welfare of ________ . <br><\/strong>a) all participating countries<br>b) only exporting countries<br>c) only importing countries<br>d) none of the above<\/p>\n\n\n\n<p><strong>15. WTO agreements incorporated ________ proposals. <br><\/strong>a) Adam Smith<br>b) David Ricardo<br>c) John M. Keynes<br>d) Arthur Dunkel<\/p>\n\n\n\n<p><strong>16. _________ has given mandate to negotiate multilateral rules relating to services. <br><\/strong>a) WTO<br>b) World Bank<br>c) IMF<br>d) ADB<\/p>\n\n\n\n<p><strong>17. Foreign direct investment is a part of _________ . <br><\/strong>a) trade account<br>b) Capital account<br>c) current account<br>d) none of the above<\/p>\n\n\n\n<p><strong>18. External borrowing is treated as ________ flow. <br><\/strong>a) Accommodative<br>b) Autonomous<br>c) invisible<br>d) none of the above<\/p>\n\n\n\n<p><strong>19. Foreign exchange reserves of India include _________ . <br><\/strong>a) Special Drawing Rights<br>b) Foreign Currency reserves<br>c) Reserve Tranche of IMF<br>d) All of the above<\/p>\n\n\n\n<p><strong>20. The highest authority of WTO is _________ . <br><\/strong>a) The Ministerial Conference<br>b) The Trade Policy Review Body<br>c) The General Council<br>d) The DisputeSettlement Body<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">11)foreign exchange reserves  12)foreign currency deposits \u2013 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<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>21. The Agreement on Agriculture does not aim at ________ . <br><\/strong>a) Improving market access<br>b) reducing domestic subsidies<br>c) Increasing export subsidies<br>d) reducing domestic support<\/p>\n\n\n\n<p><strong>22. Intellectual property rights include ________ . <br><\/strong>a) copyrights<br>b) layout designs<br>c) trade marks<br>d) All of the above<\/p>\n\n\n\n<p><strong>23. The current account balance of BoP does not include _________ . <br><\/strong>a) FDI<br>b) services exports<br>c) unilateral transfers<br>d)  non-factor services<\/p>\n\n\n\n<p><strong>24. _________ is not a part of unilateral transfers. <br><\/strong>a) Short term loans<br>b) gifts<br>c) donations<br>d) remittances by workers<\/p>\n\n\n\n<p><strong>25. ________ is not a direct measure to correct BoP disequilibrium.<br><\/strong>a) quotas<br>b) tariffs<br>c) Devaluation of exchange rate<br>d) import substitution<\/p>\n\n\n\n<p><strong>26. When BoP disequilibrium is chronic in nature and lasts for a longtime, it is a sign of ________  disequilibrium. <br><\/strong>a) cyclical<br>b) structural<br>c) fundamental<br>d) monetary<\/p>\n\n\n\n<p><strong>27. When disequilibrium takes place due to changes in demand pattern for exports or imports, it is a case of _________ disequilibrium. <br><\/strong>a) structural<br>b) cyclical<br>c) long-term<br>d) short-term<\/p>\n\n\n\n<p><strong>28. TRIMs agreement refers to treating foreign investment at ________ with domestic investment. <br><\/strong>a) par<br>b) premium<br>c) discount<br>d) inequity<\/p>\n\n\n\n<p><strong>29. The effectiveness of devaluation depends on ________ . <br><\/strong>a) international cooperation<br>b) elasticity of demand for merchandise goods<br>c) elasticity of demand for services<br>d) All of the above<\/p>\n\n\n\n<p><strong>30. Foreign exchange reserves of India include ________ . <br><\/strong>a) SDRs<br>b) Foreign Currency Assets<br>c) Gold Reserves<br>d) All of the above<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">21)Increasing export subsidies  22)All of the above  23)FDI<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 24)Short term loans  25)Devaluation of exchange rate  26)fundamental  27)structural   28)par  29)All of the above  30)All of the above<\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>31. In the past several years, India\u2019s capital account balance was in ________ . <br><\/strong>a) surplus<br>b) deficit<br>c) balance<br>d) none of the above<\/p>\n\n\n\n<p><strong>32. Portfolio foreign investment is included in _______ account of BoP.<br><\/strong>a) current<br>b) capital<br>c) trade<br>d) debit<\/p>\n\n\n\n<p><strong>33. Expenditure switching policies to correct BoP deficit include&nbsp;________ of domestic currency. <br><\/strong>a) devaluation<br>b) appreciation<br>c) revaluation<br>d) all of the above<\/p>\n\n\n\n<p><strong>34. Tariffs and quotas are imposed on imports to correct BoP deficit are called as ________ measures.<br><\/strong>a) indirect<br>b) passive<br>c) direct<br>d) all of the above<\/p>\n\n\n\n<p><strong>35. The sum of the total export-import demand elasticity must be ________ .<br><\/strong>a) equal to one<br>b) zero<br>c) greater than one<br>d) less than one<\/p>\n\n\n\n<p><strong>36. In the past several years, India\u2019s net invisibles were in _________ .<br><\/strong>a) surplus<br>b) deficit<br>c) balance<br>d) none of the above)<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Answers:<\/strong> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">31)surplus  32)capital  33)devaluation<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 34)direct  35)greater than one<\/mark> <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"> 36)surplus <\/mark><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/youtu.be\/RVnB1fdQWg8\" data-type=\"link\" data-id=\"https:\/\/youtu.be\/RVnB1fdQWg8\" target=\"_blank\" rel=\"noopener\">Video<\/a> lectures on Balance of Payment and WTO MCQ&#8217;s.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":17447,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,7],"tags":[4793],"class_list":["post-17358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bcom","category-degree-college","tag-balance-of-payment-and-wto-mcq"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=17358"}],"version-history":[{"count":6,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17358\/revisions"}],"predecessor-version":[{"id":41947,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/17358\/revisions\/41947"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/17447"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=17358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=17358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=17358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}