CUET Economics 2025 26 May Shift 2 PYQs

When income increases and due to increase in income the demand for foreign goods increases then in this scenario what impact does economy face on foreign exchange rate ?

Identify the correct reasons that may affect the demand for foreign exchange in an economy.

(A) Import of visibles.

(B) Export of invisibles.

(C) Remittances by residents working abroad.

(D) Purchase of assets abroad.

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.