Important Matching Type MCQs of Balance of Payments Class 12
Looking for Important Matching Types MCQs question of Balance of Payments chapter with answers of Macroeconomics class 12 CBSE, ISC and other state Board.
We have compiled a list of very important Matching Type multiple choice questions with answers of the Balance of payments chapter of economics class 12
Matching Types Multiple Choice Questions of Balance of Payments with answers of Economics Class 12
Let’s Practice
Identify the correct pair from Column I and Column II and choose the correct alternative:
| Column – I | Column – II |
| A – Balance of Payments | (i) It is a record of inflows and outflow of foreign exchange. |
| B – Capital Account of BoP | (ii) It records the transactions related to income and expenditure |
| C – Autonomous transactions | (iii) They are also known as ‘below the line’ items in BoP. |
| D – Balance of Trade | (iv) If refers to the sum of export of goods and import of goods during the given year. |
a) A – (i)
b) B – (ii)
c) C – (iii)
d) d – (iv)
Ans – a)
Match the following items from Column I with Column II and choose the correct alternative:
| Column – I | Column – II |
| A – BoP | (i) Demand of Forex |
| B – BoT | (ii) Visible, invisible, transfers |
| C – Unilateral Transfers | (iii) Total receipts and payments |
| D – Current Account | (iv) One-way transfers |
Option
a) A – (i)
b) c – (iv), D – (ii)
c) C – (iii)
d) D – (iv)
Ans – b)
Match the items from Column I to Column II and choose the correct alternative:
| Column – I | Column – II |
| A – Current Account Surplus | (i) Receipts of foreign exchange on financial capital nature transactions > Payments of foreign exchange on financial capital nature transactions |
| B – Current Account deficit | (ii) Receipts of foreign exchange on financial capital nature transactions < Payments of foreign exchange on financial capital nature transactions |
| C – capital Account Deficit | (iii) Receipts of foreign exchange on recurring nature transactions < Payments of foreign exchange on recurring nature transactions |
| D – Capital Account surplus | (iv) Receipts of foreign exchange on recurring nature transactions > Payments of foreign exchange on recurring nature transactions |
Options
a) B – (ii)
b) A – (iv), B – (iii), C – (ii), D – (i)
c) D – (iii)
D) C – (i)
Ans – b)
Identify the correct pair from Column – I and Column – II and choose the correct alternative:
| Column – I | Column – II |
| A – Autonomous Transactions | (i) A situation when the value of imports of goods is greater than the export of goods |
| B – Current Account of the BoP | (ii) are dependent on other transactions |
| C – Fixed Exchange Rate | (iii) is fixed by the government |
| D – Trade Surplus | (iv) Records changes in foreign investments |
Options
a) A – (i)
b) B – (ii)
c) C – (iii)
d) D – (iv)
Ans – c)
Match the following Column I and Column II and choose the correct alternative:
| Column – I | Column – II |
| A – Trade Deficit | (i) Cause of BoP imbalance |
| B – Merchandise | (ii) Export of goods < imports of goods |
| C – Autonomous items | (iii) Foreign institutional investment |
| D – Portfolio investment | (iv) Export and import of goods |
Options
a) A – (i), B – (iii), C – (iv), D – (ii)
b) A – (ii), B – (iv), C – (i), D – (iii)
c) A – (iv), B – (iii), C – (i), D – (ii)
d) A – (i), B – (ii), C – (iv), D – (iii)
Ans – b)
Match the following column I and Column II and choose the correct alternative:
| Column – I | Column – II |
| A – Purchase of land in England | (i) Current Account |
| B – Shipping services | (ii) Export of visibles |
| C – Export of Tea | (iii) Demand of Forex |
| D – Import of LCD screen from Malaysia | (iv) Export of invisibles |
Options
a) A – (i), B – (ii), C – (iv), D – (ii)
b) A – (ii), B – (iv), C – (i), D – (iii)
c) A – (iii), B – (iv), C – (ii), D – (i)
d) A – (i), B – (ii), C – (iv), D – (iii)
Ans – c)
From the following set of statements given in Column I and Column II, Select the correct pair of statements:
| Column – I | Column – II |
| A) Borrowings from the World Bank | i) Current Account |
| B) Banking service to NRI | ii) Visible item |
| C) Deficit in BoP | iii) Autonomous Receipts < Autonomous Payments |
| D) Balance of Trade | iv) Difference between exports and imports of goods and services |
options
a) A – ii)
b) C – iii)
c) B – (i)
d) D – iv)
Ans – b)
From the set of statements given in Column I and Column II, choose the correct pair of statements:
| Column – I | Column – II |
| a) Export of software to France | i) Debit side of current account |
| b) Import of Machinery from China | ii) Capital Account of Balance of Payments |
| c) Remittances to relative staying abroad | iii) Debit side of Current Account of Balance of Payments |
| d) Investment by Apple phones firm in India | iv) Credit side of Current Account of Balance of Payments |
Options
a) A – i)
b) B – ii)
c) C – iii)
d) D – iv)
Ans – c)
Match the statements given under A with the correct options given under B.
| Column (A) | Column (B) |
| i) Balance of Trade | A. Includes only visible items |
| B. Includes both visible and invisible items |
Option
a) i) – A
b) i) – B
Ans – a)
Match the statements given under A with the correct options given under B.
| Column (A) | Column (B) |
| i) Current Account | A. Change in Foreign Exchange Reserves |
| ii) Capital Account | B. Export and import of services |
Option
a) i) – A
b) i) – B
c) i) – b, ii) – a
d) ii) – b
Ans – c)
Match the statements given under A with the correct options given under B.
| Column – I | Column – II |
| i) Balance of Trade | A) Borrowings and lendings to and from abroad |
| ii) Surplus of BoP | B) Accommodating items |
| iii) Capital Account | C) Unrequited Transfers |
| iv) Credit side | D) Difference between exports and imports of goods |
| v) Below the line items | E) When autonomous receipts are more than the autonomous payments |
| vi) One-way transactions | F) All inflows of foreign exchange |
Option
A) i) – C
b) v) – a
c) vi) b
d) i) – d, ii) – e, iii) – a, iv) – f, v) – b, vi) – c
Ans – d)
