CUET Economics 2025 16 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:

The current account is the record of trade in goods and services and transfer payments. Arrange the following components in terms of service.

(A). Current account.

(B). Net factor income + Net Non-factor income.

(C). Net investment income + Net income from compensation of employees.

(D). Trade in services.

Choose the correct answer from the options given below:

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).