In accounting terms, the overall Balance of Payments always balances because: MCQ with Answer and Explanation

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In accounting terms, the overall Balance of Payments always balances because:

A. it follows double-entry bookkeeping and official reserves adjust

B. exchange rates are fixed

C. exports always equal imports

D. current account equals capital account

Answer: Option A

Solution (By JKSSB Mock Tests)

The Balance of Payments always balances in accounting terms due to double-entry bookkeeping and reserve movements.

This question belongs to: Economy GK Economy Set 1

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Currency appreciation generally makes exports:

A. more expensive in foreign currency

B. cheaper

C. unchanged

D. free from tariffs

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Correct Answer: Option A

Explanation:
When a currency appreciates, domestic goods become more expensive for foreign buyers, reducing exports.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Asian Infrastructure Investment Bank' headquarters is in:

A. Manila

B. Beijing

C. Singapore

D. Tokyo

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Correct Answer: Option B

Explanation:
AIIB headquarters is in Beijing.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Reserve Bank of India' was established on:

A. 1 April 1935

B. 1 January 1935

C. 1 April 1934

D. 1 July 1934

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Correct Answer: Option A

Explanation:
The RBI was established on 1 April 1935.

This question belongs to: Economy GK Economy Set 1

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