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

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

Which function of foreign exchange market protects against the foreign exchange risk?

1. Credit function.
2. Hedging function.
3. Transfer function.
4. All of them.

Unilateral transfers are a part of:

1. Capital Account.
2. Current Account.
3. Balance of Trade Account.
4. Balance of Payment Account and Current Account.

Balance of Trade refers to balance of exports and imports of:

1. Visible items.
2. Invisible items.
3. Both.
4. None.

Which items are excluded in BoT, but included in BOP?

1. Visible items.
2. Invisible items.
3. Private capital.
4. Both (b) and (c).

_______ is a situation when 'managed floating' is exercised by the Central Bank.

1. Crawling peg
2. Spot market
3. Dirty floating
4. None of these

Balance of Payments deficit is calculated by taking into account the _______ only.

1. accommodating transactions
2. autonomous transactions
3. unilateral transactions
4. None of the above

The supply of foreign exchange comes from ________.

1. the foreigners purchasing home country's goods and services through exports.
2. the foreigners who invest in home country through joint ventures or through financial market operations.
3. currency dealers and speculators.
4. all of them.

Which one of the following items is an intangible item in balance of payments statement?

1. Export of food grains.
2. Import of crude oil.
3. Banking services provided in other countries.
4. Import of steel by steel industry.

If the price of 1 USS has fallen from ₹ 56 to ₹ 52, the Indian currency has:

1. Depreciated.
2. Appreciated.
3. Devalued.
4. None.