Which is not a feature of Balance of Payments (BOP) Account?

1. It includes economic transactions.
2. It has given period of time.
3. It records only capital transactions.
4. Trade between resident of a country and rest of the world.

Capital account may be _______.

1. private capital.
2. banking capital.
3. official capital.
4. all of them.

Current account of BOP records transactions is relating to ______.

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

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.

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.

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.

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

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

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

1. depreciation.
2. revaluation.
3. devaluation.
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.

The supply of foreign exchange comes from ________.

1. the foreigners purchasing home country's goods and services through exports.
2. the foreigners who invest in home country through joint ventures or through financial market operations.
3. currency dealers and speculators.
4. all of them.