CUET Economics 2025 13 May Shift 2 PYQs

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.

Suppose the central bank of an economy records a net increase in the foreign exchange reserves for a given quarter. How will this be reflected in the balance of payments account of this economy?

With reference to the above passage, the current account comprises?

1. Exports and Imports of visible items only.
2. Exports and imports of visible and invisible items and external borrowings.
3. Exports and imports of goods & services plus transfer payments.
4. Short Term Debt.