Choose the correct statement regarding components of Balance of Payment.

With reference to the above passage, the current account comprises?

1. Exports and Imports of visible items only.
2. Exports and imports of visible and invisible items and external borrowings.
3. Exports and imports of goods & services plus transfer payments.
4. Short Term Debt.

A __________ account deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.

Arrange the following statements in correct order in the context of flexible exchange rate system.

(A) When income increases, consumer spending increases.

(B) Shift in demand curve for foreign exchange towards right.

(C) Spending on imported goods increases.

(D) Depreciation of domestic currency with respect to foreign currency.

Choose the correct answer from the options given below:

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 :

A mixture of a flexible exchange rate system (the float part) and a fixed rate system (the managed part) is called:

Exchange Rate is the price of a currency expressed in terms of.