Q1. Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions, equals the deficit in the BOP. True or false?
Q2. Official reserve transactions are relevant under:
Q3. Suppose the market determined exchange rate is Rs. 70/$. However, to encourage exports, the RBI devalued rupee by fixing a higher exchange rate of 1$=Rs. 75. How will the Central Bank intervene to maintain the above fixed exchange rate?
Q4. Which of the following is a source of supply of foreign exchange?
Q6. A country that has a deficit in its current account may finance it:
Q7. Borrowings are always treated as accommodating items in the BOP. True or false?
Q8. In which account of BOP, is increase or decrease in gold reserves recorded?
Q9. If the market determined exchange rate is lower than the exchange rate fixed by the Government, it will create a situation of _______________ of foreign exchange in the market.
Q10. Interest on loans received by lendings to Pakistan will be recorded in_______________ account of BOP?
Q13. The net value of balance of visible trade, invisible trade and unilateral transfers is known as:
Q14. If Apple phones firm invests in India, it will be recorded in which account and which side of BOP?
Q15. Indian rupee will be said to appreciate against the British pounds because of:
Q16. According to a headline, "Kuwait moves to tax remittances, thousands of Indians could be hit". What would be its impact on the foreign exchange rate?
Q17. A high rate of inflation in the domestic economy causes a deficit in the BOP. True or false?
Q18. Greater flow of foreign exchange from rest of the world always reflects a higher level of economic development. True or false?
Q20. Trade surplus and current account deficit may co-exist. True or false?
