Under dirty floating system, central banks intervene to buy and sell foreign currencies in an attempt to moderate exchange rate movements whenever they feel that such actions are appropriate. Therefore, official reserve transactions are:

In a situation of Balance of payments deficit, which of the following will be true?

Suppose the central bank of an economy records a net increase in the foreign exchange reserves for a given quarter. How will this be reflected in the balance of payments account of this economy?

...... links the currencies of different countries and enables comparison of international costs and prices.

The issue of currency's credibility and ensuring stability in international transactions, is handled by ............

The reserve bank sells foreign exchanges when there is a deficit in the balance of payment. This sale is called?

Which of the following statements is true. If exchange rate changes from $1 = Rs 72 to Rs 81.

A. Import will fall

B. Import will rise

C. Exports will rise

D. National Income will rise

E. National Income will fall

Choose the correct answer from the options given below: