91. What does the term “Balance of Payments” (BoP) refer to?
a. The total value of a country’s imports and exports
b. The difference between a country’s income and expenditure
c. The record of all economic transactions between residents of one country and residents of other countries
d. The sum of a country’s external debt and foreign exchange reserves
92. What is the current account in the Balance of Payments?
a. It records international trade in goods and services.
b. It records international capital flows.
c. It records changes in foreign exchange reserves.
d. It records external debt obligations.
93. Which of the following is an example of a current account transaction?
a. Exporting goods to a foreign country
b. Foreign portfolio investment
c. Repayment of external debt
d. Currency exchange for travel purposes
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94. What is the capital account in the Balance of Payments?
a. It records international trade in goods and services.
b. It records international capital flows.
c. It records changes in foreign exchange reserves.
d. It records external debt obligations.
95. What is the difference between a trade deficit and a trade surplus?
a. A trade deficit occurs when imports exceed exports, while a trade surplus occurs when exports exceed imports.
b. A trade deficit occurs when exports exceed imports, while a trade surplus occurs when imports exceed exports.
c. A trade deficit occurs when a country borrows from foreign lenders, while a trade surplus occurs when a country lends to foreign borrowers.
d. A trade deficit occurs when a country experiences inflation, while a trade surplus occurs when a country experiences deflation.
