Suppose that government bonds in country A pay 8 per cent rate of interest whereas equally safe bonds in country B yield 10 per cent. The interest rate differential is 2 per cent. Arrange the consequences of the same in sequential order.

(A) People will find investing in country B more attractive and will therefore demand less of country A's currency.

(B) Depreciation of country A's currency and an appreciation of country B's currency.

(C) Investors from country A will be attracted by the high interest rates in country B and will buy the currency of country B selling currency of country A.

(D) The demand curve for country A's currency will shift to the left and the supply curve will shift to the right.

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If ₹150 is required to buy 2 Dollar, instead of ₹100 earlier, then:

(A) Domestic currency has depreciated.

(B) Domestic currency has appreciated.

(C) The rupee value of the import bill will increase.

(D) Selling foreign exchange from its reserves by the reserve bank of India.

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For example, there is an increase in international travel by Indians. What will be the effect on the domestic currency?

(A). Demand curve shifts upward and right to the original demand curve.

(B). Demand for foreign goods and services increases.

(C). Depreciation of domestic currency (rupees) in terms of foreign currency (dollars).

(D). The value of rupees in terms of dollars has fallen and value of dollar in terms of rupees has risen.

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Which of the following is correct for managed floating exchange system?

There is a new classification in which the Balance of Payment have been divided into three accounts - the Current Account, the Capital Account and?

A mixture of a flexible exchange rate system (the float part) and a fixed rate system (the managed part) is called:

If a British resident wants to visit India on a vacation he will have to pay in ......