CUET Economics 2026 11th May Shift 1 PYQs

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).

Identify the exchange rate system in which central bank of a country intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate.

With reference to the above passage, the current account comprises?

1. Exports and Imports of visible items only.
2. Exports and imports of visible and invisible items and external borrowings.
3. Exports and imports of goods & services plus transfer payments.
4. Short Term Debt.