A level Balance of Payments Quiz 1

15 QuestionsMultiple ChoiceFree Practice

About this quiz

This A level Balance of Payments Quiz 1 quiz contains 15 multiple choice questions designed to help you revise and test your A level Balance of Payments Quizzes knowledge. Select an answer for each question and click “Submit Answer” to see instant feedback. Take your time and try to score as high as possible!

Description

In this quiz, we shall be going through the study of the balance of payments. In this topic, we have concepts like a debt trap, balance in a capital account, merchandise, and many more that are being mentioned here, and they are being explained in the form of questions. You won’t want to miss out on this.

Often abbreviated as BOP, the balance of payment refers to a statement that records all the monetary transactions made between inhabitants of a country and the rest of the world throughout any given period. The BOP includes both current and capital accounts where the current account comprises a country’s net trade in goods and services, its net earnings on extraterritorial investments, and net transfer payments. On the other hand, the capital account has to deal with a country's transactions in financial instruments and central bank reserves.

There is a lot more to learn on BOP. If you are determined to know more, just take this economic quiz and train yourself. Happy answering. 

Progress0 / 15 answered
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Question 1 of 15

 Which of the following does not form part of current account under balance of payments? 

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Question 2 of 15

 Which of the following pairs is not correctly matched with regard to balance of payment accounts? 

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Question 3 of 15

  A country is said to be in debt trap if 

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Question 4 of 15

 Balance in capital account refer to the 

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Question 5 of 15

 Which of the following are the components of balance of payments?

  1. Financial capital transfer
  2. External loan and investment
  3. Foreign institutional investment
  4. Issuing of external bonds
  5. Export and imports of goods and services

Select the correct answer  using the codes given below:

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Question 6 of 15

 Which of the following statements is correct ? 

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Question 9 of 15

 The balance of trade is a record of ? 

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Question 11 of 15

 When a country has a trade deficit it ? 

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Question 12 of 15

 A current account surplus implies that ? 

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Question 13 of 15

 A nation will a current account deficit will be ?