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Motives for International Capital Flows MCQs – Mock Test 2 PDF Download

MCQ 6: Changes in foreign direct investment are directly related to the changes in:

  1. exchange rates
  2. money demand
  3. prices
  4. money circulation

MCQ 7: A net flow of capital, into one's country, in the form of increased purchases of domestic assets by foreigners and/or reduced holdings of foreign assets by domestic residents is known as:

  1. financial transaction
  2. financial inflow
  3. financial outflow
  4. summary statement

MCQ 8: The inputs consisting of resources and other factors when depicts all maximum possibilities of two goods represents:

  1. indifference curves
  2. isoquants
  3. production possibility frontier
  4. IS-LM curve

MCQ 9: There is a kind of good that if the supplier of that good can prevent people who do not pay from consuming it is known as:

  1. excludable good
  2. rivalry good
  3. public good
  4. bad good

MCQ 10: The demand placed on one good or service as a result of changes in the price for some other related good or service is called as:

  1. driven demand
  2. derived demand
  3. speculative demand
  4. precautionary demand

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