Current transactions are of _______ nature.

1. flow.
2. stock.
3. both flow and stock.
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.

________ 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.

Which function of foreign exchange market protects against the foreign exchange risk?

1. Credit function.
2. Hedging function.
3. Transfer function.
4. All of them.

Which of the following international agency manage foreign exchange rate system in the world?

1. Central Bank.
2. IMF.
3. World Bank.
4. All of these.

Buyers and sellers of foreign exchange are _______.

1. central banks.
2. commercial banks.
3. brokers.
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.

Unilateral transfers are a part of:

1. Capital Account.
2. Current Account.
3. Balance of Trade Account.
4. Balance of Payment Account and Current Account.

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.

________ involves transactions related to transfers of assets and liabilities in BoP account.

1. Balance of trade account
2. Current account
3. Unilateral transfer account
4. Capital account