Suppose the Indian government wants to encourage exports and fix a higher exchange rate, say Rs 100 per dollar from the current exchange rate of Rs 80 per dollar. This government action in the exchange rate system is called as?

Which of the following is not a merit of the flexible exchange rate system?

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

When income increases, consumer spending increases. Spending on imported goods is also likely to __________.

1. Decrease.
2. Constant.
3. Increase.
4. Maybe an increase or maybe decrease.

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 :

The balance of payments records the transactions in goods, services and assets between residents of a country with the rest of the world for a specified time period. Identify the main accounts in the balance of payments.

Arrange the given statement in terms of determining the ehange rate through a floating /flexible exchange rate.

(A) Depreciation of domestic currency in terms of foreign currency.

(B) The demand curve shifts upward and right to the original demand curve.

(C) The demand for foreign goods and services increases.

(D) The increase in demand for foreign goods and services result in a change in the exchange rate.

Choose the correct answer from the options given below: