MCQs Wrong Answers

Question 1

A country’s current account measures

Answer 1

Receipts from the sale of goods and services to foreigners and payments for goods and services bought from foreigners

Question 2

Main function of the World Trade organisation

Answer 2

To remove obstacles to the global exchange of goods and services

Question 3

International trade enables an economy to

Answer 3

Exploit gains from specialisation

Question 4

Money is

Answer 4

Anything that is generally accepted as a medium of exchange

Question 5

Token money

Answer 5

A currency that is not backed by gold, silver or any other precious commodity equal to the face value of the money

Question 6

M1

Answer 6

Currency held outside banks + demand deposits + travellers cheques + other checkable deposits

Question 7

Savings account

Answer 7

Is included in M2, but not included in M1

Question 8

Currency held outside banks is included in

Answer 8

Both m1 and m2

Question 9

A commercial bank lists

Answer 9

Deposits as liabilities