In a situation of Balance of payments deficit, which of the following will be true? Option 1: Official reserves will increase Option 2: Official reserves will fall. Option 3: Official reserves will not be affected. Option 4: There will be an increase in international lending of the economy.

The answer is 'Official reserves will fall.'. View full solution:

CUET Economics - In a situation of Balance of payments deficit, which of the following will be true? | PYQs + Solutions

CUET Economics 2025 16 May Shift 1

Macro

Medium

Official reserves will increase

Official reserves will fall.

Official reserves will not be affected.

There will be an increase in international lending of the economy.

✅ Correct Option: 2

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31 May Shift 1

Which of the following are part of Capital account.

(A) Foreign Direct Investment.

(B) Offshore Funds.

(D) Repayment of Loans.

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(A), (B) and (C) only
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21 May Shift 1

Under __________ system, the central bank intervenes to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate.

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The headline inflation rate is largely under control, although the inflation rate for some specific food items is elevated.

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Within the range of the acceptable inflation rate.
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No price rise has been witnessed.

CUET Economics 2025 16 May Shift 1 PYQs

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