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Open Economy Macroeconomics Quiz

Class XII
Economics
Open Economy Macroeconomics
10 questions
MEDIUM

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1. What does an open economy allow for?

Only domestic trade · International trade and capital flows · No trade at all · Only capital flows

2. What is the balance of payments?

A record of all financial transactions · A measure of national income · A type of government budget · An economic growth indicator

3. Which of the following is a component of the current account?

Foreign direct investment · Exports and imports of goods and services · Portfolio investment · Official reserves

4. What does a trade surplus indicate?

Exports exceed imports · Imports exceed exports · Balanced trade · High foreign debt

5. Which of the following is NOT included in the capital account?

Foreign direct investment · Portfolio investment · Remittances · Loans