What is meant by visible items?

What does deficit in a current account indicate?

Define capital account of BoP.

List two items of the current account of BoPs account.

When will the Balance of Trade show a deficit?

A country's balance of trade is ₹ (-) 60 crores and value of import of goods is ₹ 100 crores. Find out the value of export of goods.

Define accommodating transactions in Bop.

Define autonomous transactions in BoP.

Are the concepts of demand for domestic goods and domestic demand for goods same?

State two sources of demand for foreign exchange.

There has been sustained deficit in Balance of Payments of a country. How it can be reduced?

State the components of capital accounts of balance of payments account.

What impact will fall on the expenditure of an American citizen who comes to India for Medical treatment if foreign rate is increased?

Define revaluation of currency.

What does a change from

What does a change from represent?

Define Venture Capital.

A country's balance of trade is ₹ 100 crores and value of export of goods is ₹ 175 crores. Find out value of import of goods.

What is meant by appreciation of domestic currency?

What does balance of payments account of a country record?

The price of 1 UK Pound has increased from ₹ 70 to ₹ 80. Has the Indian currency appreciated or depreciated?

What is meant by foreign exchange market?

The price of 1 US Dollar has fallen from ₹ 50 to ₹ 45. Has the Indian currency appreciated or depreciated?

Are the concepts of demand for domestic goods and domestic demand for goods the same?

Explain the automatic mechanism by which BoP equilibrium was achieved under the gold standard.

What is the main advantage of flexible exchange rate?

What is the meaning of invisible items?

When is there a deficit in the balance of trade?OR
What does a deficit in balance of trade account indicate?

Giving reasons, state whether the following statements are true or false:
Both depreciation and devaluation of domestic currency have the same meaning.

How is a deficit or a surplus on the current account restored?

Define devaluation of domestic currency.

Define devaluation of currency.

What is ‘trade balance’?

Define autonomous items in BOP.

Name the two sub-accounts (or parts) of BoP accounts.

What does deficit in capital accounts indicate?

What is meant by flexible exchange rate?

In which account of BOP, tourism services to tourist are included?

Rising reserve of India's foreign exchange is a sign of our rising exports. Do you agree?

Define current account of Bop.

What do we mean by deficit in BoP?

When will balance of trade show a deficit?

State which of the following is a visible item and which is an invisible item:

1. Export of jute product.
2. Software service experts.

Which two transactions determine Balance of Trade?

Name the items included in balance of trade account.

Distinguish between ‘autonomous’ and ‘accommodating’ Balance of Payments transactions.

Explain the circular flow of income.

When foreign exchange rate in a country is on the rise, what impact is it likely to have on imports and how?

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

Explain the meaning of Managed Floating Exchange Rate.

What are fixed and flexible exchange rates?

Foreign exchange rate in India is on the rise recently. What impact is it likely to have on exports and how?

How is exchange rate determined in the foreign exchange market? Explain.

Explain the effect for depreciation of domestic currency on exports.

Which transactions determine the balance of trade? When is balance of trade in surplus?

When price of a foreign currency falls, the demand for that foreign currency rises. Explain, why.

When price of a foreign currency falls, the supply of that foreign currency also falls. Explain, why.

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

Giving two examples, explain why there is a rise in demand for a foreign currency when its price falls.

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

Distinguish between balance of trade and balance on current account.

When exchange rate of foreign currency falls, its demand rises. Explain, how?

How is foreign exchange rate determined? Use diagram.

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

How does giving incentives for exports influence foreign exchange rate? Explain.

Name the broad categories of transactions recorded in the 'Capital account' of the Balance of Payments Accounts.

Visits to foreign countries for sightseeing etc. by the people of India is on the rise. What will be its likely impact on foreign exchange rate and how?

Name the broad categories of transactions recorded in the 'Current account' of the Balance of Payments Accounts.

Explain the meaning of balance of payments deficit.

Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?

Explain the effect of appreciation of domestic currency on imports.

Distinguish between balance of trade and balance on current account.

When price of a foreign currency rises, its demand falls. Explain why.

When price of a foreign currency rises, its supply also rises. Explain why.

Explain the meaning of deficit in balance of payments.

Distinguish between devaluation and depreciation of domestic currency.

List the items of the current account of balance of payments account. Also, define ‘balance of trade’.

State components of the current account of balance of payments account.

When exchange rate of foreign currency rises, its supply rises. How? Explain.

Give three sources each of demand and supply of foreign exchange.

Explain the concept of 'deficit' in balance of payments.

Explain the impact of rise in exchange rate on national income.

Calculate the open economy multiplier with proportional taxes, T = tY , instead of lump-sum taxes as assumed in the text.

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

What is the marginal propensity to import when M = 60 + 0.06Y? What is the relationship between the marginal propensity to import and the aggregate demand function?

Would the Central Bank need to intervene in managed floating system? Explain why?

Explain the concept of surplus in the balance of payments account.

What are official reserve transactions? Explain their importance in the balance of payments.

Match List I (exchange rate change ) with List II (Nomenclature):

S.No.	List- Exchange rate change	List-II Nomenclature
1.	Lowering of the value of a country's currency in terms of other currencies.	Appreciation.
2.	Decline (or fall) in the value of a country's currency in terms of other currencies.	Devaluation.
3.	Increase in the value of country's currency in terms of other currencies.	Depreciation.

Explain the meaning and significance of deficit in Balance of Payments.

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.

State whether the following transactions will be recorded on debit or credit side of BOP.

1. Loan from IMF to cover deficit of BOP.
2. Indian Government repays loan taken from IMF.
3. Purchase of shares of Infosys by a Japanese resident.
4. Export of Jute to Sri Lanka.
5. Acquisition of a foreign company by Tata.
6. Purchase of toys from China.

Discuss some of the exchange rate arrangements that countries have entered into to bring about stability in their external accounts.

Assume that the market price of US dollar was increased considerably leading to rise in price of the imports of essential goods. What can central bank do to ease the situation?

Distinguish between the nominal exchange rate and the real exchange rate. If you were to decide whether to buy domestic goods or foreign goods, which rate would be more relevant? Explain.

What is balance of payments account? Where are the borrowings from abroad recorded in it and why?

Explain any two merits of fixed exchange rate.

Explain the impact of increase in supply of foreign exchange on price of foreign exchange, using suitable diagram.