The difference between the value of exports and the value of imports of goods of a country in a given period of time is known as by what name?

People demand foreign exchange because:

How can a country reduce the BOP deficit?

Suppose that government bonds in country A pay 8 per cent rate of interest whereas equally safe bonds in country B yield 10 per cent. The interest rate differential is 2 per cent. Arrange the consequences of the same in sequential order.

(A) People will find investing in country B more attractive and will therefore demand less of country A's currency.

(B) Depreciation of country A's currency and an appreciation of country B's currency.

(C) Investors from country A will be attracted by the high interest rates in country B and will buy the currency of country B selling currency of country A.

(D) The demand curve for country A's currency will shift to the left and the supply curve will shift to the right.

Choose the correct answer from the options given below:

Suppose the central bank of an economy records a net increase in the foreign exchange reserves for a given quarter. How will this be reflected in the balance of payments account of this economy?

Which combination among the following represents a Geopolitical challenge in the economy.

A. Rise in inflation due to war and other natural calamities.

B. Fluctuation in economic benchmarks due to unstable government.

C. Impacting Balance of Payment due to economic sanctions on a country.

D. Failure of a firm led to a reduction in profit making.

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

Calculate the current account balance from the following values (given in dollars):

Exports of goods =188

Import of goods =248

Net invisibles;

A. Non-factor services=56

B. Transfers=36

C. Income receipts =10