The exchange rate determined by the free play of the forces of demand and supply of foreign exchange is:

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

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.

Reduction in the value of domestic currency by the government is called ______.

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

Which items in Balance of Payments are also called 'above the line' items?

1. Autonomous items.
2. Accommodating items.
3. Visible items.
4. Invisible items.

Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price?

1. Nominal exchange rate.
2. Nominal effective exchange rate.
3. Real exchange rate.
4. Real effective exchange rate.

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.

Reduction in the value of domestic currency through market forces is called ________.

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

Which of the following international agency manage foreign exchange rate system in the world?

1. Central Bank.
2. IMF.
3. World Bank.
4. All of these.

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.