12th Class Economics Foreign Exchange Rate Question Bank

done Assertion - Reason - Balance of Payments Total Questions - 5

• question_answer1)

  Directions : Read the following statements: Assertion and Reason (R). Choose one of the correct alternative.

  Assertion (A): Balance of trade is also known as visible trade.

  Reason (R): Because it records export and import of goods only and it does not record services.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
  View Solution play_arrow

• question_answer2)

  Directions : Read the following statements: Assertion and Reason (R). Choose one of the correct alternative.

  Assertion (A): Borrowing from abroad is treated as credit item in balance of payment account.

  Reason (R): Because it leads to the inflow of foreign exchange.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
  View Solution play_arrow

• question_answer3)

  Directions : Read the following statements: Assertion and Reason (R). Choose one of the correct alternative.

  Assertion (A): Deficit in BoP account arises when autonomous receipts are more than autonomous payments.

  Reason (R): Autonomous transactions are independent of the state of BoP account.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
  View Solution play_arrow

• question_answer4)

  Directions : Read the following statements: Assertion and Reason (R). Choose one of the correct alternative.

  Assertion (A): Devaluation and depreciation is one and the same thing.

  Reason (R): Devaluation is done by the government whereas depreciation is done by the market forces.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
  View Solution play_arrow

• question_answer5)

  Directions : Read the following statements: Assertion and Reason (R). Choose one of the correct alternative.

  Assertion (A): Interest on loan received from foreign country will be recorded on the debit side of BoP account.

  Reason (R): Interest on loan received from foreign country will bring funds to the country.

  A)
  Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). done clear
  B)
  Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A). done clear
  C)
  Assertion (A) is true but Reason (R) is false. done clear
  D)
  Assertion (A) is false but Reason (R) is true. done clear
  View Solution play_arrow