CUET Economics PYQs

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)

With reference to the above passage, the current account comprises?

1. Exports and Imports of visible items only.
2. Exports and imports of visible and invisible items and external borrowings.
3. Exports and imports of goods & services plus transfer payments.
4. Short Term Debt.

In the balance of payments, the transactions of bonds and equity shares are placed under which of the following account?