Match the LIST-I with LIST-II

LIST-I	LIST-II
A. Flexible Exchange Rate System	I. Central banks intervene to buy and sell foreign currencies
B. Fixed Exchange Rate System	II. Exchange rate determine by market forces
C. Managed Floating Exchange Rate System	III. It reflects differences in the price levels in the two countries
D. Purchasing Power (PPP) theory	IV. The exchange rate set by the Government

Choose the correct answer from the options given below:

Devaluation of domestic currency will make :

Choose the correct statement regarding components of Balance of Payment.

Decrease in value of domestic currency to foreign currency in fixed exchange rate system is called :

Which one of the following represents the dirty floating exchange rate system?

Identify the most unlikely reason or appreciation of the US dollar.

Which combination among the following represents a Geopolitical challenge in the economy.

A. Rise in inflation due to war and other natural calamities.

B. Fluctuation in economic benchmarks due to unstable government.

C. Impacting Balance of Payment due to economic sanctions on a country.

D. Failure of a firm led to a reduction in profit making.

1. (A), (C) and (D) only
2. (A), (B), (C) and (D)
3. (A), (B) and (C) only
4. (A) and (D) only