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Class 12 Open Economy Macroeconomics worksheet
CBSE Social Science. Balance of payments, current and capital accounts, trade balance, exchange rates, depreciation and devaluation, purchasing power parity. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
A record of a country’s transactions with the rest of the world in a year is its:
- national income
- balance sheet
- budget
- balance of payments
Answer
(d) balance of payments
- 2.
Which of these is recorded in the capital account of India’s balance of payments?
- repayment of a loan taken from abroad
- spending by foreign tourists in India
- import of machinery
- interest earned on deposits abroad
Answer
(a) repayment of a loan taken from abroad
- 3.
What is meant by “invisibles”?
- a market fall in the currency’s value
- a flexible rate with central bank intervention
- record of a country’s transactions with the world
- services, incomes and transfers
Answer
(d) services, incomes and transfers
Section B · short answer
- 4.
What is an open economy?
Answer
One that trades goods and services and has financial links with other countries.
- 5.
Current account or capital account? (a) import of machinery (b) foreigners buying shares of Indian companies
Answer
(a) current (b) capital
Section C · long answer
- 6.
Explain the components of the current account.
Answer
Trade in goods (balance of trade) and invisibles: services, income such as interest and profits, and transfers such as gifts and remittances.
Fresh sheets for your child
In the app, every Open Economy Macroeconomics sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
Coming soon for Android and iPhone.