Should a current account deficit be a cause for alarm? Explain.

Do you think that a rise in BPO services a good source of supply of foreign currency?

The price of 1 UK Pound has increased from ₹ 70 to ₹ 80. Has the Indian currency appreciated or depreciated?

State which of the following is a visible item and which is an invisible item:

1. Export of jute product.
2. Software service experts.

There has been sustained deficit in Balance of Payments of a country. How it can be reduced?

What does balance of payments account of a country record?

When will the Balance of Trade show a deficit?

If inflation is higher in country A than in Country B, and the exchange rate between the two countries is fixed, what is likely to happen to the trade balance between the two countries?

What is meant by appreciation of domestic currency?

Give the meaning of balance of payments.