Which of the following are part of Capital account.

(A) Foreign Direct Investment.

(B) Offshore Funds.

(C) Portfolio Investment.

(D) Repayment of Loans.

Choose the correct answer from the options given below:

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

In a situation of Balance of payments deficit, which of the following will be true?

Arrange the following in correct sequence with respect to exchnage rate :-

(A) The central bank purchases dollars to absorb the excess supply.

(B) The exchange rate is fixed by the government higher than the market rate of exchange.

(C) The government wants to encourage exports.

(D) Supply of the dollars exceeds the demand for the dollar.

Choose the correct answer from the options given below:

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

Under __________ system, the central bank intervenes to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate.

When a country exports more goods than its imports, the balance of trade is considered to be?

Which among the following is not a direct participant in the foreign exchange market?

Under dirty floating system, central banks intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate. Therefore, official reserve transactions are: