← Back to quiz index

Class XII Economics Quiz: Open Economy Macroeconomics

Class XII
Economics
Open Economy Macroeconomics
11 questions
HARD

Ready to take the quiz?

Test takers will enter name and email before starting.

Start quiz

Preview questions

1. What does the balance of payments account consist of?

Current account and capital account · Only current account · Only capital account · Trade account and financial account

2. Which of the following is NOT a component of the current account?

Exports of goods · Imports of services · Foreign direct investment · Net income from abroad

3. In an open economy, which factor primarily influences the exchange rate?

Interest rates · Inflation rates · Trade balance · All of the above

4. What is the effect of a trade surplus on a country's currency?

Appreciation · Depreciation · No effect · Increased inflation

5. Which of the following is a characteristic of a floating exchange rate system?

Government intervention · Market-driven currency value · Fixed currency value · Regulated by central bank