Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Bihar Board 12th Economics Objective Questions and Answers

Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Question 1.
Which one is a king of exchange rate ?
(A) Fixed Exchange Rate
(B) Flexible Exchange Rate
(C) Both (a) and (b)
(D) None of the above
Answer:
(C) Both (a) and (b)

Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Question 2.
Which of the following is true ?
(A) Fixed exchange rate is determined by the government
(B) Flexible exchange rate is determined by market forces (demand and supply of foreign exchange)
(C) Both (a) and (b)
(D) None of the above
Answer:
(C) Both (a) and (b)

Question 3.
Which one is a kind of fixed exchange rate ?
(A) Gold Standard System of Exchange Rate
(B) Bretton Woods System of Exchange Rate
(C) Both (a) and (b)
(D) None of the above
Answer:
(C) Both (a) and (b)

Question 4.
Which one is a merit of fixed exchange rate ?
(A) Promotes Foreign Trade
(B) Induces Foreign Capital
(C) Increases Capital Formation
(D) All the above
Answer:
(D) All the above

Question 5.
Which one is a demerit of fixed exchange rate ?
(A) Ignores National Interests
(B) Restricted Movement of Capital
(C) Sudden Fluctuations in Exchange Rates
(D) All the above
Answer:
(D) All the above

Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Question 6.
Which one is a merit of flexible exchange rate ?
(A) Simple System
(B) Continuous Adjustments
(C) Improves Balance of Payments
(D) All the above
Answer:
(D) All the above

Question 7.
Which one is a demert of flexible exchange rate ?
(A) Bad Results of Low Rate
(B) Uncertainty
(C) Instability in Foreign Exchange
(D) All the above
Answer:
(D) All the above

Question 8.
Which one is a source of the demand of foreign exchange ?
(A) Imports of Goods and Services from Abroad
(B) Investment in Foreign Nations
(C) Gift Scheme to Foreign Nations
(D) All the above
Answer:
(D) All the above

Question 9.
Foreign exchange is determined by :
(A) Demand of foreign currency
(B) Supply of foreign currency
(C) Demand and supply in foreign exchange market
(D) None of the above
Answer:
(C) Demand and supply in foreign exchange market

Question 10.
The forms of foreign exchange market is/are :
(A) Spot market
(B) Forward market
(C) Both (a) and (b)
(D) None of these
Answer:
(C) Both (a) and (b)

Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Question 11.
Foreign exchange rate is determined by :
(A) Government
(B) Barganing
(C) World Bank
(D) Demand and Supply forces
Answer:
(D) Demand and Supply forces

Question 12.
By exchange rate we mean :
(A) How much local currency we have to pay for a foreign currency
(B) How much of a foreign currency we have to pay for another foreign currency
(C) The rate at which foreign currency is bought and sold
(D) All of these
Answer:
(D) All of these

Question 13.
Balance of Trade = ?
(A) Export of Visible Items – Imports of Visible Items
(B) Export of both Visible and Invisible Items – Import of both Visible and Invisible Items
(C) Import of Visible Items – Export of Visible Items
(D) None of the above
Answer:
(A) Export of Visible Items – Imports of Visible Items

Question 14.
Which items are included in Balance of Payments ?
(A) Visible Items
(B) Invisible Items
(C) Capital Transfers
(D) All the above
Answer:
(D) All the above

Question 15.
Which one is the visible item of Balance of Payments ?
(A) Machine
(B) Colth
(C) Cement
(D) All of these
Answer:
(D) All of these

Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Question 16.
Which one is the invisible item of Balance of Payment ?
(A) Banking
(B) Shipping
(C) Communication
(D) All of these
Answer:
(D) All of these

Question 17.
Which one is the feature of Balance of Payment ?
(A) Systematic Accounts
(B) Fixed Time Period
(C) Comprehensiveness
(D) All the above
Answer:
(D) All the above

Question 18.
Which account is included inthe composition of Balance of Payments ?
(A) Current Account
(B) Capital Account
(C) Both (a) and (b)
(D) None of the above
Answer:
(C) Both (a) and (b)

Question 19.
Which one is the item of Current Account ?
(A) Import of Visible Items
(B) Expenses of Tourists
(C) Exports of Visible Items
(D) Al1 the above
Answer:
(D) Al1 the above

Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Question 20.
Which one is the item of Capital Account ?
(A) Government Transaction
(B) Priva Transactions
(C) Foreign Direct Investment
(D) All the above
Answer:
(D) All the above

Question 21.
The component(s) of Balance of Payment is/are:
(A) Current Account
(B) Capital Account
(C) Both (a) and (b)
(D) None of these
Answer:
(C) Both (a) and (b)

Question 22.
Which items are included in balance of trade ?
(A) Invisible Item
(B) Capital Transfer
(C) Visible Item
(D) All of these
Answer:
(C) Visible Item

Question 23.
Balance of Trade means :
(A) Capital Transaction
(B) Import and export of goods
(C) Total debit and credit
(D) All the above
Answer:
(B) Import and export of goods

Bihar Board 12th Economics Objective Answers Chapter 9 Open Economy Macroeconomics

Question 24.
The reason of imbalance in balance of payment is :
(A) Natural Reasons
(B) Economic Reasons
(C) Political Reasons
(D) All of these
Answer:
(D) All of these

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