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.

Current account is a part of balance of trade. (True/ False)

Giving reason, state whether the following statement are true or false.
Accommodating items are also known as 'above the line' items.

Giving reasons, state whether the following statements are true or false:
Depreciation of domestic currency encourages exports.

Giving reason, state whether the following statement are true or false.
Accommodating items of trade are undertaken in order to maintain the balance in the BOP account.

Giving reasons, state whether the following statements are true or false:
Appreciation of domestic currency discourages imports.

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.
In spot market sale and purchase of foreign currency is settled on a specified future date.

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.