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Questions 1 Which of the following items are included in the Current Account of the Balance of Payments?
2 A country has a Balance of Trade deficit of Rs 800 crore. If the value of its exports is Rs 500 crore, what is the value of its imports?
3 How does the depreciation of the domestic currency typically affect a country's trade?
4 What is the primary difference between autonomous items and accommodating items in the BOP?
5 The relationship between the demand for foreign exchange and the exchange rate is generally ________.
6 Which system allows the Central Bank to intervene in the foreign exchange market to reduce volatility, often referred to as 'dirty floating'?
7 Which of the following are functions of the Foreign Exchange Market?
8 Devaluation of a currency is a deliberate action taken by the government under which exchange rate system?
9 Identify the factors that can cause a disequilibrium in the Balance of Payments.
10 In the Balance of Payments, what is the term used for the record of only visible items (exports and imports of merchandise)? 