Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called: (Choose the correct alternative)

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

Which exchange rate is officially declared by the government?

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

Current transactions are of _______ nature.

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

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.

Buyers and sellers of foreign exchange are _______.

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

Which one of the following statements deals with debts and claims of a country?

1. Balance of capital account.
2. Balance of trade account.
3. Balance of current account.
4. Balance of services.

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

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

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

_______ 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

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)