CUET Economics 2025 13 May Shift 2 PYQs

...... links the currencies of different countries and enables comparison of international costs and prices.

Official reserve sale refers to

1. The reserve bank sells foreign exchange when there is a deficit.
2. The International Monetary Fund sells foreign exchange when there is a deficit.
3. Net consequences of autonomous transactions.
4. The agreement in which national currencies are traded for one another.

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).