Balance of Payments (CBSE Class-12 Economics): Questions 1 - 11 of 44

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Question number: 1

» Balance of Payments » Balance of Payments Account

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Explain the meaning of deficit in Balance of Payments.

Question number: 2

» Balance of Payments » Foreign Exchange Rate

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Give two reasons for a rise in demand for a foreign currency when its price falls.

Question number: 3

» Balance of Payments » Balance of Payments Account

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Distinguish between current account and capital account of balance of payment account. Is import of machinery recorded in current account or capital account?

Question number: 4

» Balance of Payments » Balance of Payments Account

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What is meant by balance of trade?

Question number: 5

» Balance of Payments » Foreign Exchange Rate

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List three sources each of demand and supply of foreign exchange

Question number: 6

» Balance of Payments » Balance of Payments Account

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Distinguish between the current account and capital account of balance of payments account. Is import of machinery recorded in current account or capital account? Give reasons for your answer.

Question number: 7

» Balance of Payments » Foreign Exchange Rate

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State two sources of supply of foreign currency.

Question number: 8

» Balance of Payments » Foreign Exchange Rate

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The price of 1 US Dollar has fallen from Rs. 50 to Rs. 48. Has the Indian currency appreciated or depreciated?

Question number: 9

» Balance of Payments » Foreign Exchange Rate

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What is meant by foreign exchange rate?

Question number: 10

» Balance of Payments » Balance of Payments Account

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State the nature of transactions that are recorded in current account of the Balance of Payments account.

Question number: 11

» Balance of Payments » Foreign Exchange Rate

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State any two merits and demerits of flexible exchange rate system.

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