Buyers and sellers of foreign exchange are _______.

1. central banks.
2. commercial banks.
3. brokers.
4. all of them.

________ involves transactions related to transfers of assets and liabilities in BoP account.

1. Balance of trade account
2. Current account
3. Unilateral transfer account
4. Capital account

Unfavorable disequilibrium in BoP occurs when there is:

1. Balance of trade deficit.
2. Total exports are more than total imports.
3. Total imports are more than total exports.
4. Exports of goods and services are less than imports of goods and services.

Current transactions are of _______ nature.

1. flow.
2. stock.
3. both flow and stock.
4. none of the above.

Government transactions include _______ to keep the BOP in balance and which are not carried out for profits.

1. borrowings from IMF and other financial institutions
2. grants and donations
3. foreign exchange reserve
4. Both (a) and (C)

What is the difference between the value of exports and value of imports of goods called?

1. Balance of Payments.
2. Foreign exchange.
3. Balance of Trade.
4. Disequilibrium.

If India exports goods worth 20 crore and imports goods worth 30 crore, it will have a _________.

1. surplus of ₹ 10 crore in balance of trade.
2. deficit of ₹ 10 crore in balance of trade.
3. deficit of ₹ 50 crore in balance of trade.
4. can't say.

Foreign exchange is demanded by _______.

1. domestic residents to purchase goods and services from other countries.
2. sending gifts and grants to foreign countries (abroad).
3. the domestic residents to purchase financial assets in a particular country.
4. all of them.

Which exchange rate is officially declared by the government?

1. Managed Floating Rate.
2. Floating Exchange Rate.
3. Fixed Exchange Rate.
4. None.

_______ 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