________ 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 exchange rate determined by the free play of the forces of demand and supply of foreign exchange is:

1. Flexible Exchange Rate.
2. Fixed Exchange Rate.
3. Managed Floating.
4. None.

Current transactions are of _______ nature.

1. flow.
2. stock.
3. both flow and stock.
4. none of the above.

________ 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

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

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

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.

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.

_______ is a situation when 'managed floating' is exercised by the Central Bank.

1. Crawling peg
2. Spot market
3. Dirty floating
4. None of these

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.