Match List-I with List-II

List-I	List-II
(A) Devaluation	(I) When the government decreases the exchange rate of foreign currency.
(B) Foreign Exchange Market	(II) Exchange rate is determined by the market forces.
(C) Revaluation	(III) The market in which national currencies are traded for one another.
(D) Floating Exchange Rate	(IV) Government action increases the exchange rate of foreign currency.

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Which of the following are the components of current Account ?

(A) Trade in Services

(B) Trade in Goods

(C) Investment

(D) External borrowings

(E) External Assistance

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More foreign currency will flow into the home country when :

In an economy, to control a high balance of payment problem if government decided to reduce its currency value against globally accepted foreign currency, this process this known as:

Central banks intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate. What is this move called?

Which of the following statements are correct in respect to Balance of payment?

A. Exports of goods are entered on debit side.

B. Transfer payments are receipts without rendering any services in return.

C. Capital account includes external borrowings.

D. Net invisibles are the part of current account.

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Identify the correct statements with respect to current account:

A. Balance of trade is the difference between export and import of goods in given period of time.

B. Current account records all international transactions of assets.

C. Trade in services includes factor income and non-factor income transactions.

D. Current account is in balance when capital inflows are equal to capital outflows.

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