Question
Explain two merits each of flexible foreign exchange rate and fixed foreign exchange rate.
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|
S. No.
|
|
(₹ in crores)
|
|
(i)
|
Government final consumption expenditure.
|
4,000
|
|
(ii)
|
Private final consumption expenditure
|
35,00
|
|
(iii)
|
Gross domestic capital formation.
|
1,100
|
|
(iv)
|
Net exports.
|
500
|
|
(v)
|
Net factor income from abroad.
|
100
|
|
(vi)
|
Net factor income from abroad.
|
300
|
|
(vii)
|
Subsidies.
|
40
|
|
(viii)
|
Change in stock.
|
80
|
|
(ix)
|
Consumption of fixed capital.
|
120
|
| (Rs. Arab) | ||
|
(i)
|
Capital receipts net of borrowings
|
95
|
|
(ii)
|
Revenue expenditure
|
100
|
|
(iii)
|
Interest payments
|
10
|
|
(iv)
|
Revenue receipts
|
80
|
|
(v)
|
Capital expenditure
|
110
|
|
S. No.
|
|
(₹in crores)
|
| $(i)$ |
Net factor income from abroad.
|
$20$ |
| $(ii)$ |
Sales by $A$.
|
$1,000$ |
| $(iii)$ |
Sales by $B.$
|
$2,000$ |
| $(iv)$ |
Change in stock of $B.$
|
$(-)200$ |
| $(v)$ |
Closing Stock of $A.$
|
$50$ |
| $(vi)$ |
Opening stock of $A.$
|
$100$ |
| $(vii)$ |
Consumption of fixed capital by $A$ and $B.$
|
$180$ |
| $ (viii)$ |
Indirect taxes paid by $A$ and $B$
|
$120$ |
| $(ix)$ |
Purchase of raw materials etc. by $A.$
|
$500$ |
| $(x)$ |
Purchase of raw materials etc. by $B.$
|
$600$ |
| $(xi)$ |
Exports by $B.$
|
$70$ |