International Economics

JKPSC Assistant Professor (Economics) · Economics · 51 practice questions with answers and explanations: 5 Easy, 46 Medium, 0 Hard.

Sample questions

Sample Easy question 1

SDR is a unit of account of the:

  1. WTO
  2. UNCTAD
  3. World Bank
  4. IMF
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Answer: D. Special Drawing Rights.

Sample Easy question 2

Which institution is also known as the World Bank?

  1. BIS
  2. WTO
  3. IBRD
  4. IMF
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Answer: C. The International Bank for Reconstruction and Development.

Sample Easy question 3

Foreign direct investment is different from portfolio investment in that it:

  1. Is short term
  2. Has no risk
  3. Involves alone bonds
  4. Involves lasting control in an enterprise
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Answer: D. FDI gives management control.

Sample Medium question 4

The current account includes:

  1. Only goods
  2. Only capital
  3. Trade in goods and services, income and transfers
  4. Only transfers
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Answer: C. A deficit means imports exceed exports.

Sample Medium question 5

The capital account includes:

  1. Only goods
  2. Only services
  3. Only transfers
  4. Investment flows and loans
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Answer: D. FDI is in the financial account.

Sample Medium question 6

Under a fixed exchange rate system, a deficit is corrected by:

  1. Currency depreciation
  2. Loss of reserves and deflationary policy
  3. Floating
  4. No action
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Answer: B. It needs intervention.

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