Where will sale of machinery to abroad be recorded in the Balance of Payments Accounts? Give reasons.

Distinguish between devaluation and depreciation of domestic currency.

Explain the meaning and significance of deficit in Balance of Payments.

Assume that the market price of US dollar was increased considerably leading to rise in price of the imports of essential goods. What can central bank do to ease the situation?

Visits to foreign countries for sightseeing etc. by the people of India is on the rise. What will be its likely impact on foreign exchange rate and how?

Explain the effect for depreciation of domestic currency on exports.

Name the broad categories of transactions recorded in the 'Current account' of the Balance of Payments Accounts.

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

Why supply curve of foreign exchange is upward sloping?

Would the Central Bank need to intervene in managed floating system? Explain why?