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.

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.

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

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

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

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

Capital account may be _______.

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

Increase in the value of domestic currency through market forces is called _______.

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

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.

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

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

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

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

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.