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.

Match the following.

1	Visibles	(i)	Foreign investment and borrowing
2	Invisible	(ii)	Transportation and communication
3	Capital account	(iii)	Car and mobiles
4	Unilateral transfers	(iv)	Grants and donations

Codes: I II III IV

1. (ii) (i) (iii) (iv)
2. (iii) (ii) (i) (iv)
3. (iii) (iv) (ii) (i)
4. (i) (ii) (iii) (iv)

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

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

________ is a systematic record of all the economic transactions between one country and rest of the world.

1. Balance of trade.
2. Balance of transactions.
3. Budget.
4. Balance of payments.

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.

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 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.

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.

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.

Which exchange rate is officially declared by the government?

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