Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Autonomous items cause movements of goods and services across the borders.
Reason (R): Accommodating items to clear the deficit or surplus in the Balance of Payment.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Import of machinery is reflected in the current account of balance of payments.
Reason (R): Export and import of goods and invisibles are recorded in the current account of balance of payments.
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Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Current account is a part of Balance of Trade.
Reason (R): Current account records exports and imports of goods and services and transfer payments.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): The level of aggregate demand tends to rise.
Reason (R): Exports are more than imports.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): In case of currency appreciation, less rupees are to be paid to buy one US dollar.
Reason (R): Currency appreciation leads to increase in value of domestic currency in reference to foreign currency. So, less is needed to pay for the same amount.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): Export of goods and services from India to the US would mean outflow of foreign exchange from India.
Reason (R): Foreign exchange in terms of receipts for exports flows from the US to India.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): In order to restore the value of depreciating domestic currency, the Central Bank sells the US dollars in the international money market.
Reason (R): By selling US dollars, the supply of dollars will increase which will reduce the price of dollars.
Directions: In the following questions, a statement of assertion (A) is followed by a statement of reason (R). Mark the correct choice as:
Assertion (A): When in order to buy 1 US dollar ₹ 80 are needed instead of ₹ 75, domestic currency shows depreciation.
Reason (R) : Depreciation of domestic currency refers to fall in the value of domestic currency in terms of foreign currency caused by rise in foreign exchange rate in the foreign exchange market.
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