Learning through Quizzes:Macro Quiz 2

17 Which of the following items are debit items in the balance of payments for the United
Sates?

A) a German citizen buys a U.S. Treasury bill

B) a U.S. citizen buys a vacation home in Mexico

C) a U.S. citizen makes a deposit in a Swiss bank

D) all of the above

18. As a business management student from your macroeconomics learning you will tick from
the following options which statement is not correct?

a) Errors and Omission is the balancing factor in BoP Transaction

b) Lease is a transaction in Capital account

c) External Commercial borrowing is a transaction in Current account

d) none of these

19. You are recording BoP for USA and if a French citizen buys 100 shares of IBM stock on
the New York Stock Exchange, the transaction will be recorded as

a)a credit item in the finance account

b)a debit item in the capital account

c)a surplus item in the current account

d) a decrease in France's GDP

20.. You are listening to the CNBC news and the news reporter said that according to the
India’s Bop data for Q2 2016-17 the trade deficit of is US $ 130.1 bn, Net services surplus is
US$ 69.7 bn and net income surplus is US $ 38.3bn. Suddenly there was a disruption in the
channel and you could not get to know the magnitude of Current account deficit( CAD). From
the above data which was the CAD figure for India?

A) (-) US $ 32.4 bn

B) US$ (-) 32.9 bn

C)(-) US $22.1bn

23. Which of the following is a part of debt capital flows in India?

a) Reserve Assets

b) NRI Deposits

c) Reinvested Earnings

d) Investment Income

24..While answering to the question from the macroeconomic professor , Why does the AD
curve slope downward?, the MBA student answered as follows

“ When the price level falls, there are three effects, wealth effect, interest rate effect and
exchange rate effect, and these effects stimulate consumption, investment and net
exports and there by impact the increase in output”

25.Is the above answer of the student explains the reasons why does AD Curve slope down
wards?

A) Yes

B) No

26.Residual Maturity of external debt includes

A) Period encompassing the precise time of creation of the financial liability to its date of
maturity
B) Maturity Period of less than two tears
C) Includes short term debt by original maturity up to one year
D) Includes short term debt by original maturity up to one year and medium and long
term debt by original maturity having remaining maturity period of one year
period
E) External debt issued with a period 6 months