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? Option 1: current account, debit side Option 2: current account, credit side Option 3: capital account, debit side Option 4: capital account, credit side

The answer is 'capital account, debit side'. View full solution:

CUET Economics - 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? | PYQs + Solutions

CUET Economics 2025 16 May Shift 1

Macro

Medium

current account, debit side

current account, credit side

capital account, debit side

capital account, credit side

✅ Correct Option: 3

Related questions:

CUET Economics 28 May Shift 1

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.

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

Choose the correct answer from the options given below:

CUET Economics 31 May Shift 1

From the following statements choose the effects of devaluation of domestic currency.

(A) Exchange rate is fixed.

(B) Indian Government increases the exchange rate.

(D) The Exports of India will rise.

Choose the correct answer from the options given below:

CUET Economics 3 June Shift 1

Which of the following statements is true?

If exchange rate changes from $1 = ₹85 to$ 1 = ₹90

(A) Imports will fall.

(B) Imports will rise.

(D) National income will rise.

Choose the correct answer from the options given below: