The term 'Invisible Trade' in the balance of payments refers to: MCQ with Answer and Explanation

The term 'Invisible Trade' in the balance of payments refers to:
A. Only foreign direct investment
B. Only capital transfers
C. Trade in goods only
D. Trade in services, income and transfers
Answer: Option D
Solution (By JKSSB Mock Tests)
Invisible trade (or invisibles) includes trade in services (such as tourism, software, transportation), income (interest, dividends) and unilateral transfers.

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Practice More Economy Set 1 Questions

Question #1
The 'strategic sale' in disinvestment means:
A. sale of controlling shareholding to a private or strategic buyer
B. buyback of shares
C. sale of shares in the stock market
D. merger of two PSUs

Correct Answer: Option A


Explanation:
Strategic sale involves transfer of management control.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following taxes is progressive in nature?
A. Excise duty
B. Income tax
C. Sales tax
D. Customs duty

Correct Answer: Option B


Explanation:
A progressive tax is one where the tax rate increases with the increase in the taxable amount. Personal income tax in India is progressive with different slabs.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of a traditional economy?
A. Rapid industrialisation
B. High use of advanced technology
C. Extensive use of money and banking
D. Customs and traditions determine economic decisions

Correct Answer: Option D


Explanation:
In a traditional economy, economic decisions regarding production and distribution are based on customs, traditions and hereditary practices.

This question belongs to: Economy GK Economy Set 1