If TOYOTA company establishes a factory in Pakistan, this will be recorded in balance of payments in the section _____.

1. 1. Invisible Balance
   2. Official Financing
   3. Capital Account
   4. Visible Balance

If GNP of Pakistan rises, it will encourage _____.

1. 1. Exports
   2. Imports
   3. Both (a) and (b)
   4. None of these

What will be the expected result if the value of rupee falls against dollar?

1. 1. The price of American goods in Pakistan will rise
   2. The price of Pakistani goods in the USA will rise
   3. The price of Pakistani goods in Pakistan will fall
   4. The price of American goods in the USA will fall

Which property the paper money does not possess?

1. 1. Acceptability
   2. Divisibility
   3. Portability
   4. Durability

The bank established for loans to very small enterprises in Pakistan is called _____.

1. 1. Khushhali Bank
   2. Modarba Bank
   3. SME Bank
   4. First Mini Bank

Which of the following statements is correct regarding a tariff?

1. 1. It increases the volume of trade
   2. It has no effect on volume of trade
   3. It reduces the volume of trade
   4. None of these

Commercial policy means _____.

1. 1. Policy about imports and exports
   2. Policy about markets
   3. Policy about money supply
   4. Policy of controlling of prices of goods

Balance of payments of a country includes _____.

1. 1. Savings and investment account
   2. Balance of trade
   3. Capital receipts and payments
   4. (b) and (c) above

Government policy about exports and imports is called _____.

1. 1. Monetary Policy
   2. Fiscal Policy
   3. Commercial Policy
   4. Finance Policy

Two countries can gain from foreign trade if:

1. 1. Tariff rates are different
   2. Cost ratios are different
   3. Price ratios are different
   4. (b) and (c) above