Relevant Titles:
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Disequilibrium in Balance of Payments Class 12 Economics MCQs with Answers
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CBSE Class 12 Economics Online Test – Balance of Payments Disequilibrium
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NCERT-Based Class 12 Economics MCQs on BoP Disequilibrium
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Class 12 Economics MCQs – Balance of Payments Deficit and Surplus
Introduction:
Strengthen your CBSE Class 12 Economics exam preparation with this online MCQ practice test on “Disequilibrium in Balance of Payments.” This vital topic from Part A: Introductory Macroeconomics helps students understand how imbalances occur in a country’s external transactions and their implications for economic stability.
These MCQs are designed strictly as per the latest NCERT Class 12 Economics syllabus, ensuring full alignment with the CBSE board exam pattern. The quiz covers key areas such as meaning and types of disequilibrium, causes of BoP deficit and surplus, corrective measures, and the role of fiscal and monetary policies in restoring balance.
With automatic scoring and instant feedback, this interactive test helps learners evaluate their conceptual understanding, improve accuracy, and prepare confidently for board exams. Ideal for self-assessment, classroom learning, or quick revision, it provides an engaging, exam-oriented experience.
Master this essential macroeconomic concept with our NCERT-based online MCQ test on Disequilibrium in Balance of Payments and enhance your confidence for the CBSE Class 12 Economics board examination.
Sample MCQs with Explanations:
1. What does disequilibrium in Balance of Payments mean?
A) Equality between receipts and payments
B) Excess of receipts over payments
C) Inequality between receipts and payments
D) Balance in both accounts
✅ Answer: C) Inequality between receipts and payments
💡 Explanation: Disequilibrium occurs when a country’s total receipts from foreign exchange differ from its total payments.
2. A BoP deficit indicates:
A) Exports are greater than imports
B) Imports exceed exports
C) Equilibrium in foreign trade
D) No capital inflows
✅ Answer: B) Imports exceed exports
💡 Explanation: When imports are higher than exports, foreign exchange outflow exceeds inflow, causing a BoP deficit.
3. Which of the following can cause BoP disequilibrium?
A) Growth in exports
B) Inflation and excessive imports
C) Balanced trade policy
D) None of the above
✅ Answer: B) Inflation and excessive imports
💡 Explanation: High inflation increases import demand and reduces export competitiveness, creating imbalance.
4. Which policy helps correct BoP deficit?
A) Expansionary fiscal policy
B) Import promotion
C) Restrictive monetary policy
D) Subsidies on imports
✅ Answer: C) Restrictive monetary policy
💡 Explanation: Restrictive policies reduce money supply and import demand, helping restore balance.
5. Persistent BoP disequilibrium may lead to:
A) Currency appreciation
B) Currency depreciation
C) Price stability
D) Increase in foreign reserves
✅ Answer: B) Currency depreciation
💡 Explanation: Continuous BoP deficits lead to higher demand for foreign currency, causing the domestic currency to depreciate.
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