Giving reasons, state whether the following statements are true or false:
Both depreciation and devaluation of domestic currency have the same meaning.

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

Supply of foreign exchange is positively related to the price of foreign exchange. (True/ False)

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:
Depreciation of domestic currency encourages exports.

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:
Appreciation of domestic currency discourages imports.

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.

Are the following statement true or false? Give reason.Appreciation of domestic currency leads to rise in imports.

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.