stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Y10 Balance of Payments Flashcards | StudBud
Explore
/
Y10 Balance of Payments
Y10 Balance of Payments
30 terms
·
StudBud Administration
·
94 plays
Basics of balance of payments for Economics AS Level
Flashcards
30 cards
F
Practice quiz
P
Host live
L
Questions
30
Answers
1
Raising interest rates will result to ____.
all of the given
hot money flows
falling investment spending
reduced consumption
2
Which of the given is NOT part of the current account?
capital transfers
income receipts
trade in services
trade in merchandise
3
Which of the given is NOT a cause of balance of payment disequilibrium?
fewer stocks of domestic goods on shelves
short-term economic boom, more goods imported
high propensity to import goods
political or economic instability
4
An accounting of a country's international transactions for a particular time period
Terms of trade
balance of payments
current account
capital account
5
a tax on imports
export subsidy
tariff
exchange control
quota
6
Which is NOT an example of expenditure dampening policy?
deflationary monetary policy
tariffs
deflationary fiscal policy
raising interest rates and reducing money supply
7
Which is not a benefit of export subsidies?
domestic producers have more job security
domestic producers earn higher wages
taxpayer funds are used for the subsidy
foreign consumers pay lower prices buy more exports
8
A country can use a ___________to reduce imports and fix a BOP or trade deficit
Regional union
quota
free trade agreement
Legislation
9
A trade partner country switches to a rival country that produces coffee, which CA item will be affected?
Trade in services
Secondary income
Primary income
Trade in Goods
10
Devaluing a country's currency makes its _____.
exports and imports cheaper
exports and imports more expensive
imports cheaper
exports cheaper
11
Govt restricts emigration of workers, what will fall?
Trade in Services
Primary Income
Trade is goods
Secondary income
12
One way for a country to fix a BOP deficit would be to raise________rates
Minimum wage
tax
interest
exchange rates
13
Foreign donations were sent to The country devastated by Hurricane Helene. Which item in the CA?
Trade in goods
Secondary income
Trade in services
Primary Income
14
When the government gives money to domestic producers to encourage more exports
quota
export subsidy
tariff
import tax
15
By making exports cheaper and imports more expensive, a BOP or trade deficit is
ignored completely.
Magnified & out of control.
reduced & managed.
Increased & creating more problems.
16
Raising interest rates helps fix BOP deficits by
selling more exports
making things cheaper
causing domestic capital to flee
attracting hot money
17
People with money to lend (investors) like to invest their money where the interest rate is?
high
low
18
When persistent deficits or surpluses in balance of payments occur
BOP equilibrium
BOP disequilibrium
19
What should a country do with its interest rate to resolve BOP deficits?
keep it at the same level
Lower it
Raise it
Dilly Dilly
20
These are policies designed to reduce overall spending in the economy.
expenditure inflating policy
expenditure switching polices
expenditure dampening policy
devaluation
21
A central bank increases its interest rates, which CA item will be affected?
Primary Income
Trade in services
Secondary income
Trade in Goods
22
Any transaction that causes money to flow INTO a country
debit
bonus
appreciation
credit
23
Limiting the amount of foreign currency in the hands of citizens to reduce imports
quota
tax
exchange controls
tariff
24
Devaluing a country's currency makes its _____.
exports and imports cheaper
imports more expensive
export and imports more expensive
exports more expensive
25
A condition when current account deficit is offset by a financial & capital account surplus.
balance of payment disequilibrium
balance of payment equilibrium
26
Direct taxes increased by 10%. Which CA item will not be directly affected?
Secondary Income
Trade in goods
Trade in services
Primary Income
27
Which is NOT an example of a protectionist policy?
discretionary fiscal policy
export subsidies
quotas
tariffs
28
Which of the given is NOT a consequence of BOP disequilibrium?
domestic unemployment
fewer stocks of imported goods on shelves
reduction of tariffs and quotas
reduction in foreign direct investment
29
This measures the flow of GOODS and SERVICES into and out of a particular country.
current account
financial account
capital account
income account
30
Inflation makes export goods _______.
more expensive
highly competitive in the global market
cheaper
scarce
