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

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

Foreign exchange transactions dependent on other foreign exchange transactions are called: (Choose the correct alternative)

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

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.

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.

Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely: (Choose the correct alternative)

1. To rise.
2. To fall.
3. To rise or to fall.
4. To remain unaffected.

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.

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.

Capital account may be _______.

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

In case of currency appreciation, the domestic currency becomes _______.

1. less valuable.
2. more valuable.
3. rise.
4. fall.

Which exchange rate is officially declared by the government?

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