In modern economies, countries interact through various channels, Which market is not an example of these linkages?

Arrange the given statement in terms of determining the ehange rate through a floating /flexible exchange rate.

(A) Depreciation of domestic currency in terms of foreign currency.

(B) The demand curve shifts upward and right to the original demand curve.

(C) The demand for foreign goods and services increases.

(D) The increase in demand for foreign goods and services result in a change in the exchange rate.

Choose the correct answer from the options given below:

A banking service provided by a country is accounted in the element of the balance of payment.

The measurement of Balance of Payments deficit is based on ___________ transactions.

Under a flexible exchange rate, when the price of domestic currency in terms of foreign currency increases is called?

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:

It is difficult to record all international transactions accurately. Thus, there is a third element of Balance of Payment (BoP) (apart from the current and capital accounts) which adjusts inaccuracies to some extent that is called:

1. Reserves Change
2. Overall Balance
3. Errors and Omissions
4. Other Flows