Corrections of the Balance of Payments (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is a balance of payments disequilibrium?
What is a balance of payments disequilibrium?
When currency flows continuously differ
What characterises a balance of payments deficit?
What characterises a balance of payments deficit?
More currency leaves than enters
What is the main approach to correcting persistent deficits?
What is the main approach to correcting persistent deficits?
Increasing exports and limiting imports
Why do countries seek assistance from the IMF?
Why do countries seek assistance from the IMF?
For emergency lending during imbalances
How does currency depreciation affect a country's exports?
How does currency depreciation affect a country's exports?
Makes them cheaper for foreigners
What is export promotion?
What is export promotion?
Government initiatives to boost sales abroad
What is the purpose of import substitution?
What is the purpose of import substitution?
To replace imports with domestic production
How do higher interest rates help correct payment imbalances?
How do higher interest rates help correct payment imbalances?
They reduce domestic spending on imports
What is the WTO's position on import controls?
What is the WTO's position on import controls?
Opposes them and promotes trade freedom
What must people do under exchange controls when earning foreign currency?
What must people do under exchange controls when earning foreign currency?
Surrender it to the central bank