When one country manipulates exchange rate against the interest of other country, is known as ________.

1. managed floating.
2. dirty floating.
3. wide band.
4. crawling peg.

Match the following.

1	Visibles	(i)	Foreign investment and borrowing
2	Invisible	(ii)	Transportation and communication
3	Capital account	(iii)	Car and mobiles
4	Unilateral transfers	(iv)	Grants and donations

Codes: I II III IV

1. (ii) (i) (iii) (iv)
2. (iii) (ii) (i) (iv)
3. (iii) (iv) (ii) (i)
4. (i) (ii) (iii) (iv)

What will be the effect on exports if foreign exchange rate increases?

1. Increases.
2. Decreases.
3. Remains constant.
4. None of them.

Foreign exchange transactions dependent on other foreign exchange transactions are called: (Choose the correct alternative)

1. Current account transactions.
2. Capital account transactions.
3. Autonomous transactions.
4. Accommodating transaction.

________ is a systematic record of all the economic transactions between one country and rest of the world.

1. Balance of trade.
2. Balance of transactions.
3. Budget.
4. Balance of payments.

Balance of Payments ‘deficit’ is the excess of:

1. Current account payments over current account receipts.
2. Capital account payments over capital account receipts.
3. Autonomous payments over autonomous receipts.
4. Accommodating payments over a accommodating receipts.

Increase in the value of domestic currency by the government is called _______.

1. depreciation.
2. devaluation.
3. revaluation.
4. appreciation.

_______ is the rate which is determined by market forces.

1. Fixed exchange rate
2. Real exchange rate
3. Flexible exchange rate
4. Nominal exchange rate

Capital account may be _______.

1. private capital.
2. banking capital.
3. official capital.
4. all of them.