Giving reason, state whether the following statement are true or false.
In balance of payments, repayment of loans by Indian Government to American Government will be reflected as debit item.

Giving reasons, state whether the following statements are true or false:A fall in the price of 1 US dollar from ₹ 50 to ₹ 40 means depreciation of the Indian currency.

Giving reason, state whether the following statement are true or false.
Borrowing by government from World Bank to finance the BOP deficit will be recorded in the capital account.

Balance of trade is the difference between export of services and import of services of a country. (True/ False)

Decrease in demand for foreign currency leads to currency depreciation. (True/ False)

Giving reason, state whether the following statement are true or false.
Foreign exchange received on account of export of sugar will be recorded in current account.

Accommodating items do not cause any movement of goods and services across the borders. (True/ False)

Are the following statement true or false? Give reason.
An increase in demand for imported goods raises the supply for foreign exchange.

Are the following statement true or false? Give reason.
In spot market sale and purchase of foreign currency is settled on a specified future date.