Balance of Payments [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 11 - 22 of 44

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Question 11

Write in Short Short Answer▾

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

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Question 12

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What is balance of trade?

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Question 13

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Give two examples of macroeconomic studies.

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Question 14

Appeared in Year: 2010

Describe in Detail Subjective▾

Explain the meaning of deficit in Balance of payment.

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Explanation

The deficit in the Balance of payment is directed by the Balance of transactions in Autonomous items and international economic…

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Question 15

Appeared in Year: 2010

Describe in Detail Subjective▾

Distinguish between devaluation and depreciation of domestic currency.

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Explanation

Distinguish between Devaluation and Depreciation of Domestic Currency in Details
CharacteristicDevaluation of domestic currencyDepreciation of domestic currency

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Question 16

Appeared in Year: 2010

Write in Short Short Answer▾

Give the meaning of ex-ante savings.

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Question 17

Appeared in Year: 2011

Write in Short Short Answer▾

Define cash reserve ratio.

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Question 18

Appeared in Year: 2011

Describe in Detail Subjective▾

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

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Explanation

When the price of foreign currency rises then the domestic goods have become cheaper for the foreign residents because they can buy more goods and services with same worth of foreign currency. So, the foreign demand for domestic products rises. This conducts increase in the exports of domestic country. So, the domestic country receives more foreign…

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Question 19

Appeared in Year: 2011

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

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Explanation

When the price of foreign currency rises then it involve that foreign goods have become expensive for the domestic residents of the country. T…

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Question 20

Appeared in Year: 2012

Write in Brief One Liner▾

Define Tax.

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Question 21

Appeared in Year: 2012

Write in Brief One Liner▾

Give meaning of managed floating exchange rate.

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Question 22

Appeared in Year: 2012

Describe in Detail Subjective▾

Explain the components of legal reserve ratio.

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Explanation

commercial banks to keep as a cash

Its component are given below:

(i) Cash Reserve Ratio (CRR) :-

CRR is included amount of funds that commercial banks maintain with reserve bank of India.

For example assume that total assets of bank is worth ₹ 250 crore and minimum cash ratio is 10% then the amount the commercial bank has to maintain with reserve bank…

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