Distinguish between balance on trade account and balance on current account.

Where is 'borrowings from abroad' recorded in the Balance of Payments Accounts? Give reasons.

Where will sale of machinery to abroad be recorded in the Balance of Payments Accounts? Give reasons.

Distinguish between autonomous and accommodating transactions of balance of payments account.

Why supply curve of foreign exchange is upward sloping?

Identify the following items as credit or debit transactions on Balance of Payments account: Exports, imports, borrowing from rest of the world, lending to the rest of the world, import of software services.

Identify the following items as visible items or invisible items.

1. Export of computer software.
2. Import of LCD screen from Malaysia.
3. Banking service to NRI.
4. Export of Tea to Thailand.
5. Consultancy services of TCS used by a foreign firm.

Distinguish between devaluation and depreciation of domestic currency.

How is foreign exchange rate determined? Use diagram.

Balance of Trade shows a deficit of ₹ 5,000 crore. Value of exports is ₹ 4,000 crore. Find out the value of imports.