CUET Economics 2025 27 May Shift 2 PYQs

What is the role of official reserve account?

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)

Balance of Payments of an economy records.