CUET Economics PYQs

Under the fixed exchange rate regime, if the government of a country finds its currency to be overvalued and therefore deliberately reduces the value of its current against the foreign currency, it will be called as?

Exchange rate determined by the market forces of demand and supply is also known as...

Suppose, in a flexible exchange rate system, demand for foreign goods and services increases due to increased international travel by Indians.

Arrange the following statements in correct sequence.

(A) Exchange rate increases.

(B) Exports from India become more affordable for foreigners.

(C) India's income increases by keeping other factors constant.

(D) The demand curve shifts towards the right.

Choose the correct answer from the options given below:

1. (D), (B), (C), (A)
2. (D), (C), (B), (A)
3. (D), (A), (B), (C)
4. (D), (B), (A), (C)