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

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

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.

Balance of Payments ‘deficit’ is the excess of:

1. Current account payments over current account receipts.
2. Capital account payments over capital account receipts.
3. Autonomous payments over autonomous receipts.
4. Accommodating payments over a accommodating receipts.

Which items are excluded in BoT, but included in BOP?

1. Visible items.
2. Invisible items.
3. Private capital.
4. Both (b) and (c).

Government transactions include _______ to keep the BOP in balance and which are not carried out for profits.

1. borrowings from IMF and other financial institutions
2. grants and donations
3. foreign exchange reserve
4. Both (a) and (C)

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.

Current account of BOP records transactions is relating to ______.

1. exchange of goods.
2. exchange of services.
3. unilateral transfers.
4. all of them.

What will be the effect of appreciation of domestic currency?

1. Imports will fall and exports will rise.
2. Both exports and imports will fall.
3. Imports will rise and exports will fall.
4. Both exports and imports will rise.

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

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