6. Assertion (A) Balance of payment represents better picture of a country economic transactions with the rest of the world than balance of Trade.
   Reason (R) Balance of payment takes into account the exchange of both visible and invisible items whereas balance of trade does not
   Code

1. 1. Both (A) and (R) are true and (R) is the correct explanation of (A)

   
   
   

   2. Both (A) and (R) are true but (R) is not a correct explanation of (A)

   
   
   

   3. (A) is true but (R) is false

   
   
   

   4. (A) is false but (R) is true

   
   
   

---

1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: A

   N/A

---

7. Which of the following is a features of WTO?
   i . Its main aim is to liberalise international trade.
   ii . It was started at the initiative of the developed countries.
   iii. The rules of WTO are framed to favour the developing countries.
   iv . It establishes rules regarding international trade.

1. 1. Only (i), (ii) and (iv)

   
   
   

   2. Only (ii) and (iii)

   
   
   

   3. Only (iii) and (iv)

   
   
   

   4. All of these

   
   
   

---

1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: A

   N/A

---

---

8. Assertion (A) The rate of growth of India's exports has shown an appreciable increase after 1991.
   Reason (R) The Government of India has resorted to devaluation
   Code

1. 1. Both (A) and (R) are true and (R) is the correct explanation of (A)

   
   
   

   2. Both (A) and (R) are true but (R) is not a correct explanation of (A)

   
   
   

   3. (A) is true but (R) is false

   
   
   

   4. (A) is false but (R) is true

   
   
   

---

1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: A

   N/A

---

9. Many a time we come across a term in financial newspaper 'Balance of Payments'. What does it really reflect?

1. 1. It is the statements of receipt from foreign countries and payments made to foreign countries

   
   
   

   2. It is the statement of the total value of GDP and share of imports in it in terms of the percentage of GDP

   
   
   

   3. It is the statement of Total receipts of the Government and its share in total GDP in terms of percentage

   
   
   

   4. Only a and b

   
   
   

---

1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: A

   N/A

---

---

10. 'Trade Gap' means

1. 1. Gap between total imports and total exports

   
   
   

   2. Gap between total GDP and total consumption

   
   
   

   3. Gap between available liquidity and expected demand

   
   
   

   4. Gap between budgeted revenue collection and actual collection of the same

   
   
   

---

1. View Hint View Answer Discuss in Forum

   N/A

   Correct Option: A

   N/A

---