Subject Faiez Amein khan

Economic Analysis MBA (3.5)

Chapter Names Semester 2nd

1) Balance of Payment
2) Trade Cycle
3) Exchange Rate

Objective Marks (20)

1) The BOP consist of:
a) Credit, Current and Payment account
b) Prepaid, Postpaid and Capital account
c) Cash, Capital and current account
2) The difference between exports and imports of visible items is called:
a) Balance of Trade (BOP)
b) Balance of Trade (BOT)
c) Exchange Rate
3) Two non-visible item (receipts payments) include in:
a) Balance of Trade (BOP)
b) Balance of Trade (BOT)
c) Exchange Rate
4) Formula: Current account + Capital account = ?
a) Cash account
b) Balance of Trade (BOP)
c) Balance of Trade (BOT)
5) In law of foreign exchange demand the exchange rate is:
a) Inversely proportional to Qd
b) Directly proportional to Qd
c) Equal to Qd
6) In law of supply for foreign exchange the exchange rate is:
a) Inversely proportional to Qd
b) Directly proportional to Qd
c) Equal to Qd
7) If the demand for dollars increased and the supply of the dollars does not change the
exchange rate is:
a) Exchange rate becomes fall
b) Exchange rate becomes equal
c) Exchange rate becomes rise
8) Due to fixed exchange rate the international trades, capital outflow or inflow becomes:
a) Encourage
b) Discourage
c) A & B both
9) In BOP the capital account of country consists of all transactions about:
a) Financial assets and official investment
b) Official reserves and reserves account
c) Financial assets and Official reserves
10) The problem of deficit in BOP has two causes which are:
a) High export capacity and excessive imports needs
b) Low export capacity and excessive imports needs
c) Low export capacity and low imports needs
11) In BOP current and capital accounts:
a) Items equal the line
b) Items below the line
c) Items above the line
12) The period of stress and strain for any economy called:
a) Economic stability
b) Economic crises
c) Economic instability
13) There are two savings in business:
a) Upward and downward savings
b) Leftward and downward savings
c) Upward and rightward savings
14) In trade cycle the slump or through phase called :
a) Recovery phase
b) Boom phase
c) Depression phase
15) When business activity gathers momentum the phase called:
a) Recessionary phase
b) Boom phase
c) Recovery phase
16) In diagram which represents the four phase of trade cycle we take:
a) Growth X-axis and time Y-axis
b) Price Y-axis and time X-axis
c) Growth Y-axis and time X-axis
17) The phase in which rise in production, prices, employment, wages, profit called:
a) Recovery or revival phase
b) Boom or peak phase
c) Depression or slump phase
18) The duration of each trade cycle are:
a) Differs from the other
b) Equal to other
c) Less than and equal to from the other
19) The price at which over currency exchanges for another is called:
a) Balance of Payment (BOP)
b) Balance of Trade (BOT)
c) Exchange rate
20) Currency appreciation is the value of one currency in terms of another currency:
a) Fall
b) Rise
c) Equal

Answers

1 C 8 A 15 B
2 B 9 A 16 C
3 B 10 B 17 B
4 B 11 C 18 A
5 A 12 B 19 C
6 C 13 B 20 B
7 C 14 C