Question : ___________ is the difference between a country's exports and imports of goods and services.

Option 1: Trade deficit

Option 2: Trade surplus

Option 3: Balance of payments

Option 4: Current account

Question : What is the impact of a stronger domestic currency on a country's imports and exports?

Option 1: Increase in imports, decrease in exports
  

Option 2: Decrease in imports, increase in exports
   

Option 3: Increase in imports, increase in exports

Option 4: Decrease in imports, decrease in exports

Question : Which of the following is not a current account transaction?

Option 1: Foreign direct investment

Option 2: Export of goods and services

Option 3: Transfer payments

Option 4: Income from foreign investments

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 a country's exports of goods and services exceed its imports, it is said to have a:

Option 1: Balance of payments surplus

Option 2: Balance of payments deficit

Option 3: Trade deficit

Option 4: Trade surplus