Explain the meaning of deficit in the balance of payments.

Distinguish between devaluation and depreciation of domestic currency.

Match List I (exchange rate change ) with List II (Nomenclature):

S.No.	List- Exchange rate change	List-II Nomenclature
1.	Lowering of the value of a country's currency in terms of other currencies.	Appreciation.
2.	Decline (or fall) in the value of a country's currency in terms of other currencies.	Devaluation.
3.	Increase in the value of country's currency in terms of other currencies.	Depreciation.

If balance of trade is showing a deficit of ₹ 10,000 and value of exports is ₹ 15,000, then the value of imports will be ₹ 25,000. (True/ False)

List the items of the current account of balance of payments account. Also, define ‘balance of trade’.

Distinguish between autonomous and accommodating transactions of balance of payments account.

When exchange rate of foreign currency rises, its supply rises. How? Explain.

Discuss briefly the meanings of:

1. Fixed Exchange rate.
2. Flexible Exchange Rate.

Balance of Trade shows a deficit of ₹ 5,000 crore. Value of exports is ₹ 4,000 crore. Find out the value of imports.

Can there be a deficit in Balance of Trade without a deficit in Balance of Payments?