CUET Economics 2025 14 May Shift 1 PYQs

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:

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.

Chronologically arrange the following in sequence:

(A) Smithsonian Agreement.

(B) Gold standard system of exchange.

(C) Gold was replaced by creating the Special Drawing Rights (SDR).

(D) Bretton woods conference.

Choose the correct answer from the options given below: