CUET Economics - Which one of the following statements is correct about the balance of payment (BOP)? | PYQs + Solutions

CUET Economics 2026 23rd May Shift 1

Macro

Medium

The Reserve bank buys foreign exchange when there is a deficit.

Accommodating transactions are made to bridge the gap between the BOP transactions.

The country can use its gold reserves to balance the surplus in BOP.

Autonomous transactions are dependent on the state of BOP.

✅ Correct Option: 2

Related questions:

14 May Shift 1

Match List-I with List-II

List–I	List–II
(A) Devaluation	(I) Price of foreign currency in terms of domestic currency increase
(B) Revaluation	(II) Price of domestic currency in terms of foreign currency increases
(C) Depreciation	(III) Increase the exchange rate by the action of the Government
(D) Appreciation	(IV) Decreases the exchange rate by the action of the Government

Choose the correct answer from the options given below:

19th May Shift 2

Choose the correct statement regarding components of Balance of Payment.

15th May Shift 1

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. Third element of BOP	I. Dirty floating
B. Managed Floating	II. Depreciation of domestic currency
C. When the government makes domestic currency cheaper	III. Errors and omissions
D. When the price of foreign currency in terms of domestic currency has increased	IV. Devaluation

Choose the correct answer from the options given below:

CUET Economics 2026 23rd May Shift 1 PYQs