CUET Economics 2026 31st May Shift 1 PYQs

What does the BOP record?

Foreign exchange reserves are ample, means?

1. Reserve is sufficient to purchase goods and services from abroad.
2. Anticipated demand for foreign goods and services can be met through incumbent foreign exchange reserve.
3. Supply of foreign reserves is more than demand of foreign reserves.
4. Government is confident about present and future need of foreign reserve.

The reserve bank sells foreign exchanges when there is a deficit in the balance of payment. This sale is called?