Which one of the following is the major advantage of flexible exchange rate system?

Which of the following statements is true?

If exchange rate changes from $1 = ₹85 to$1 = ₹90

(A) Imports will fall.

(B) Imports will rise.

(C) Exports will rise.

(D) National income will rise.

Choose the correct answer from the options given below:

International economic transactions are called ....... when transactions are made due to some reason other than to bridge the gap in the balance of payments, that is when they are independent of the state of balance of payments.

In which one of the following exchange rate systems, 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?

Arrange the following economic events in chronological order:

(A) Gold was displaced by creating the Special Drawing Rights (SDRs).

(B) The Great Depression.

(C) First World War.

(D) Bretton Woods Conference.

Choose the correct answer from the options given below:

Arrange the following statements in correct sequence relating to change in exchange.

(A) The Central Bank intervenes to purchase dollars rate between Dollars and Rupee in the foreign exchange market.

(B) The government sets the exchange rate above the equilibrium exchange rate.

(C) This will absorb the excess supply of dollars in the foreign exchange market.

(D) It will result in excess supply of dollars in the foreign exchange market.

Choose the correct answer from the options given below :

Which of the following is incorrect about accommodating transactions of the BoP?