Practice Test


1) Unilateral transfers include _________


2) The full form of TRIMs is _________


3) WTO was set up on _________


4) Autonomous capital inflows ________ other items in the balance of payments.


5) The current account in the balance of payments ________


6) A deficit in India's balance of payments in recent times is due to _____________.


7) Good performance on ________ has helped India to improve its current account balance in recent times.


8) There has been impressive increase in _______ on India's capital account in the recent times.


9) After covering deficits on current account, excess capital account receipts are added to _______.


10) Bank capital on India's capital account includes _______.


11) Private transfers on India's current account includes _______


12) Gains from trade are possible when cost ratio of the trading countries are different


13) International trade brings in many dynamic gains.


14) Balance of trade always balances.


15) Short term lending is listed on the debit side of the balance of payments.


16) Items that give rise to receipts of foreign currency are listed on the debit side of the balance of payments.


17) The prupose of WTO is to remove restrictions in international trade


18) India's receipts on invisible accounts have played an important role on balance of payments front in the recent times


19) Cyclical transmission causes disequilibrium in balance of payments.


20) Depreciation of a currency makes the imports cheaper


21) Depreciation of a currency makes the exports cheaper.


22) Devaluation means official reduction in the value of the domestic currency.


23) Most Favoured Nations (MFN) rule under WTO implies that some countries have more advantage in trade.


24) The Agreements of WTO are related to only non-agricultural goods.


25) Cost differences are due to difference in factor prices


26) Economies today are Autocratic


27) Ordinary demand curves slopes upwards from left to right


28) A shift in the offer curve changes the extent of gains from trade


29) Domestic trade leads to higher level of consumption


30) Payment made to other countries is debit


31) International organisations are classified as foreign residents


32) Industrial products includes consumer and capital goods


33) A surplus on current Account is always a matter of worry


34) A plus sign indicates rise in foreign exchange


35) It may be a rare incident if a item by itself achives a balance


36) Capital account has two types of flow


37) Low Demand for import causes deficits in exporting countires


38) Imports have kept rising since 1991 in India


39) Recently China has become a major competitor of India


40) WTO deals only with all small aspects of international trade


41) The WTO agreement is lengthy and complex


42) GATTs VIII round of Meeting lasted for 8 years