Practice Concept of Surplus and Deficit - 1.2 | Chapter 4: Balance of Payments and Exchange Rate | ICSE Class 12 Economics
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define what constitutes a surplus in terms of Balance of Payments.

πŸ’‘ Hint: Think about the relationship between exports and imports.

Question 2

Easy

What is a deficit?

πŸ’‘ Hint: Consider what happens when imports exceed exports.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is a surplus?

  • A situation where outflows exceed inflows
  • A situation where inflows exceed outflows
  • An equal balance of inflows and outflows

πŸ’‘ Hint: Remember what gets counted as inflows.

Question 2

A deficit can lead to increased foreign debt. True or False?

  • True
  • False

πŸ’‘ Hint: Think about consequences of not having enough reserves.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Given a country experiences a consistent surplus, analyze how this may impact its exchange rate and foreign investment strategies.

πŸ’‘ Hint: Consider how stronger currency might influence investor perceptions.

Question 2

If a government realizes it has been running a deficit for three consecutive quarters, propose potential strategies it might adopt to amend this situation.

πŸ’‘ Hint: Think about economic adjustments that can realign imports and exports.

Challenge and get performance evaluation