The country could use its reserves of foreign exchange in order to balance any deficit in its balance of payments. The reserve bank sells foreign exchange when there is a deficit is called ?

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

Choose the correct answer from the options given below :

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

Arrange the following in correct sequence with respect to exchnage rate :-

(A) The central bank purchases dollars to absorb the excess supply.

(B) The exchange rate is fixed by the government higher than the market rate of exchange.

(C) The government wants to encourage exports.

(D) Supply of the dollars exceeds the demand for the dollar.

Choose the correct answer from the options given below:

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

The likely impact of an appreciation of the US dollar, on imports of the South East Asian Countries from the US. would be :

Arrange the following statements about the effect of change in demand for foreign goods on foreign exchange rate in open economy in correct sequence.

(A) It leads to a shift in the demand curve towards right.

(B) More Rupee needed against a dollar.

(C) Demand for foreign goods and services increases in the economy.

(D) It leads to depreciation of the domestic currency in terms of dollars.

Choose the correct answer from the options given below:

Which of the following are the components of current Account ?

(A) Trade in Services

(B) Trade in Goods

(C) Investment

(D) External borrowings

(E) External Assistance

Choose the correct answer from the options given below :