CUET Economics 2025 30 May Shift 1 PYQs

Arrange the following components as per the sample of Balance of Payments for India.

(A) Trade Balance.

(B) Net Invisibles.

(C) Current Account Balance.

(D) Errors and Omissions.

Choose the correct answer from the options given below:

Choose the correct statements from the following in respect of exchange rate system.

(A) Floating Exchange Rate exchange rate is determined by the market forces of demand and supply.

(B) In a fixed exchange rate system, making domestic currency cheaper is called Devaluation.

(C) Increase in exchange rate implies that the price of foreign currency has increased and is called depreciation.

(D) Exchange rates between any two currencies adjust to reflect differences in the price levels in the two countries.

Choose the correct answer from the options given below:

Which of the following is not an example of Net Invisible items?

1. Banking
2. Shipping
3. Machinery
4. Tourism