Official reserve transactions are made to bridge the gap in the Balance of Payment (BoP), they are seen as the ________ item in the BoP.

Which of the following items can be included in Capital Account in BOP ?

(A) An Indian buys a UK Car company

(B) A Swedish citizen buys shares of Reliance company

(C) Export of Rajasthan's blue pottery to an Italian restaurant owner

(D) Apple I-phones gifted by an Indian company to its employees

Choose the correct answer from the options given below :

Arrange the following in the correct order with respect to the change in import demand and its impact on exchange rate:

A. National income increases.

B. Domestic currency depreciates.

C. Spending on imported goods is likely to increase.

D. The demand curve for foreign exchange shifts to the right.

Choose the correct answer from the options given below:

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

Which system is prone to speculative attack on a currency?

Which of the following is true for the surplus in the Balance of Payments?

Arrange the following statements related to foreign exchange market (fixed exchange rate) in correct sequence.

(A) RBI intervenes to purchase the dollars for rupees in the foreign exchange market in order to absorb this excess supply.

(B) The government will fix a higher exchange rate by making the rupee cheaper for foreigners.

(C) Supply of dollars exceeds the demand for dollars.

(D) The Indian government wants to encourage exports.

Choose the correct answer from the options given below: