Which of the following is correct for managed floating exchange system?

Owing to the current political instability across many countries, the Indian rupee has sharply lost its value in terms of US dollars. The impact of this would be :

(A) A rise in imports from USA

(B) A fall in imports from USA

(C) A rise in exports to USA

(D) A fall in exports to USA

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In a fixed exchange rate system, the government's action that increases the exchange rate of foreign currency is called?

Match List-I with List-II

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Trade deficits occur when

The likely impact on the Balance of payment position of Countries facing a financial crisis would be :

Suppose that government bonds in country A pay 8 per cent rate of interest whereas equally safe bonds in country B yield 10 per cent. The interest rate differential is 2 per cent. Arrange the consequences of the same in sequential order.

(A) People will find investing in country B more attractive and will therefore demand less of country A's currency.

(B) Depreciation of country A's currency and an appreciation of country B's currency.

(C) Investors from country A will be attracted by the high interest rates in country B and will buy the currency of country B selling currency of country A.

(D) The demand curve for country A's currency will shift to the left and the supply curve will shift to the right.

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