Question : On the ___ account, merchandise exports and imports of goods are _______ transactions.
Option 1: Current, accommodating
Option 2: Current, autonomous
Option 3: Capital, accomodating
Option 4: Capital, autonomous
Correct Answer: Current, autonomous
Solution : On the current account, merchandise exports and imports of goods are autonomous transactions. Hence, B is correct.
Question : On the _____________ account, receipts and repayments of long term loans by private individuals are __________________ transactions.
Question : _________ refers to difference between the amount of exports and imports of goods.
Option 1: Balance of payment
Option 2: Balance of trade
Option 3: Accommodating items
Option 4: Autonomous items.
Question : Purchase of shares of Airtel by Microsoft is a part of
Option 1: Capital account
Option 2: Current account
Option 3: Autonomous items
Option 4: Accommodating items.
Question : A current account deficit indicates that a country is spending more on __________than it is earning from__________.
Option 1: exports, imports
Option 2: goods, services
Option 3: capital, financial
Option 4: imports, exports
Question : When price of a foreign currency falls ______from that foreign country becomes cheaper and ________ increases.
Option 1: Imports, imports
Option 2: Exports, exports
Option 3: Imports, exports
Option 4: Exports, Imports
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