Balance of Payments (CBSE Class-12 Economics): Questions 12 - 23 of 44

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Question number: 12

» Balance of Payments » Balance of Payments Account

One Liner Question▾

Write in Brief

What is balance of trade?

Question number: 13

» Balance of Payments » Balance of Payments Account

One Liner Question▾

Write in Brief

Give two examples of macroeconomic studies.

Question number: 14

» Balance of Payments » Balance of Payments Account

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the meaning of deficit in Balance of payment.

Explanation

The deficit in the Balance of payment is directed by the Balance of transactions in Autonomous items and international economic transactions that are assumed with the sole earning profit. The Balance of product show a deficit if the autonomous receipts are less than the autonomous payments. Autonomous receipts indicate receipt… (26 more words) …

Question number: 15

» Balance of Payments » Balance of Payments Account

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Distinguish between devaluation and depreciation of domestic currency.

Explanation

Distinguish between devaluation and depreciation of domestic currency.

Distinguish between devaluation and depreciation of domestic currency in details.

Characteristic

Devaluation of domestic currency

Depreciation of domestic currency

Definition

Devaluation of domestic currency is lowering of value of domestic currency and it is against by monetary authority.

Depreciation of domestic currency… (56 more words) …

Question number: 16

» Balance of Payments » Determination of Exchange Rate in a Free Market

Appeared in Year: 2010

Short Answer Question▾

Write in Short

Give the meaning of ex-ante savings.

Question number: 17

» Balance of Payments » Determination of Exchange Rate in a Free Market

Appeared in Year: 2011

Short Answer Question▾

Write in Short

Define cash reserve ratio.

Question number: 18

» Balance of Payments » Foreign Exchange Rate

Appeared in Year: 2011

Essay Question▾

Describe in Detail

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

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,… (60 more words) …

Question number: 19

» Balance of Payments » Foreign Exchange Rate

Appeared in Year: 2011

Essay Question▾

Describe in Detail

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

Explanation

When the price of foreign currency rises then it involve that foreign goods have become expensive for the domestic residents of the country. This results in a fall in the demand for foreign goods by the domestic residents. So, the demand for foreign currency falls.

For example, suppose the rupee-dollar… (50 more words) …

Question number: 20

» Balance of Payments » Balance of Payments Account

Appeared in Year: 2012

One Liner Question▾

Write in Brief

Define Tax.

Question number: 21

» Balance of Payments » Foreign Exchange Rate

Appeared in Year: 2012

One Liner Question▾

Write in Brief

Give meaning of managed floating exchange rate.

Question number: 22

» Balance of Payments » Balance of Payments Account

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Explain the components of legal reserve ratio.

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 Rs. 250 crore and minimum cash ratio… (64 more words) …

Question number: 23

» Balance of Payments » Balance of Payments Account

Appeared in Year: 2012

Essay Question▾

Describe in Detail

Explain the distinction between autonomous and accommodating transaction in balance of payments. Also explain the concept of balance of payments ‘deficit’ in this context.

Explanation

Autonomous item in balance of payments: - In this autonomous items include international transactions with a motive of earning profits. Transactions are independent of balance of payments. Autonomous transaction are also called ‘above the line items’ in balance of payments.

Accommodating transaction: - It includes include international transaction this is… (47 more words) …

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