If India exports goods worth 20 crore and imports goods worth 30 crore, it will have a _________.

1. surplus of ₹ 10 crore in balance of trade.
2. deficit of ₹ 10 crore in balance of trade.
3. deficit of ₹ 50 crore in balance of trade.
4. can't say.

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

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

Name the economic transactions which are undertaken to make equilibrium in balance of payment,

1. Autonomous items.
2. Accommodating items.
3. Invisible items.
4. None of them.

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.

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.

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

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.

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.

What will be the effect on exports if foreign exchange rate increases?

1. Increases.
2. Decreases.
3. Remains constant.
4. None of them.

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

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