List of top Economics Questions on A brief analysis of recent exchange rate issues asked in CUET (UG)

Consider the following statements about Adam Smith and his economic philosophy: A. Adam Smith's concept of the ``invisible hand'' implies that individuals pursuing their self-interest contribute to societal well-being.
B. Smith argued that government intervention is essential in regulating markets for economic efficiency.
C. The wealth of a nation is determined by the productivity and efficiency of its labour force.
D. Modern economists have built upon Smith's ideas but have also recognized the need for macroeconomic policies.
Choose the correct answer from the options given below:
In the Balance of Payments, transactions involving bonds and equity shares are recorded under which of the following accounts?
The ratio of the total increase in equilibrium value of final goods output to the initial increase in autonomous investment expenditure is known as:
If \(₹150\) is required to buy 2 dollars instead of \(₹100\) earlier, then: \[ (A)\ \text{Domestic currency has depreciated} \] \[ (B)\ \text{Domestic currency has appreciated} \] \[ (C)\ \text{The rupee value of the import bill will increase} \] \[ (D)\ \text{Selling foreign exchange from its reserves by the Reserve Bank of India} \]
Choose the correct statements regarding the exchange rate system: \[ (A)\ \text{In a floating exchange rate system, the exchange rate is determined by market forces of demand and supply.} \] \[ (B)\ \text{In a fixed exchange rate system, making the domestic currency cheaper is called devaluation.} \] \[ (C)\ \text{An increase in the exchange rate implies that the price of foreign currency has increased, which is called depreciation.} \] \[ (D)\ \text{Exchange rates between two currencies adjust to reflect differences in price levels in the two countries.} \]
The price of a bag increased from \(\$8\) to \(\$12\) in the US and from \(₹400\) to \(₹480\) in India. What is the effect on the dollar in terms of exchange rate?
The price of a bag increased from \(\$8\) to \(\$12\) in the US and from \(₹400\) to \(₹480\) in India. What is the effect on the dollar in terms of exchange rate?
Choose the correct statements regarding the exchange rate system: \[ (A)\ \text{In a floating exchange rate system, the exchange rate is determined by market forces of demand and supply.} \] \[ (B)\ \text{In a fixed exchange rate system, making the domestic currency cheaper is called devaluation.} \] \[ (C)\ \text{An increase in the exchange rate implies that the price of foreign currency has increased, which is called depreciation.} \] \[ (D)\ \text{Exchange rates between two currencies adjust to reflect differences in price levels in the two countries.} \]
If \(₹150\) is required to buy 2 dollars instead of \(₹100\) earlier, then: \[ (A)\ \text{Domestic currency has depreciated} \] \[ (B)\ \text{Domestic currency has appreciated} \] \[ (C)\ \text{The rupee value of the import bill will increase} \] \[ (D)\ \text{Selling foreign exchange from its reserves by the Reserve Bank of India} \]
If \(₹150\) is required to buy 2 dollars instead of \(₹100\) earlier, then: \[ (A)\ \text{Domestic currency has depreciated} \] \[ (B)\ \text{Domestic currency has appreciated} \] \[ (C)\ \text{The rupee value of the import bill will increase} \] \[ (D)\ \text{Selling foreign exchange from its reserves by the Reserve Bank of India} \]
The price of a bag increased from \(\$8\) to \(\$12\) in the US and from \(₹400\) to \(₹480\) in India. What is the effect on the dollar in terms of exchange rate?
Choose the correct statements regarding the exchange rate system: \[ (A)\ \text{In a floating exchange rate system, the exchange rate is determined by market forces of demand and supply.} \] \[ (B)\ \text{In a fixed exchange rate system, making the domestic currency cheaper is called devaluation.} \] \[ (C)\ \text{An increase in the exchange rate implies that the price of foreign currency has increased, which is called depreciation.} \] \[ (D)\ \text{Exchange rates between two currencies adjust to reflect differences in price levels in the two countries.} \]
Choose the correct statements regarding the exchange rate system: \[ (A)\ \text{In a floating exchange rate system, the exchange rate is determined by market forces of demand and supply.} \] \[ (B)\ \text{In a fixed exchange rate system, making the domestic currency cheaper is called devaluation.} \] \[ (C)\ \text{An increase in the exchange rate implies that the price of foreign currency has increased, which is called depreciation.} \] \[ (D)\ \text{Exchange rates between two currencies adjust to reflect differences in price levels in the two countries.} \]
If \(₹150\) is required to buy 2 dollars instead of \(₹100\) earlier, then: \[ (A)\ \text{Domestic currency has depreciated} \] \[ (B)\ \text{Domestic currency has appreciated} \] \[ (C)\ \text{The rupee value of the import bill will increase} \] \[ (D)\ \text{Selling foreign exchange from its reserves by the Reserve Bank of India} \]
The price of a bag increased from \(\$8\) to \(\$12\) in the US and from \(₹400\) to \(₹480\) in India. What is the effect on the dollar in terms of exchange rate?
The following are features of flexible exchange rate system select the correct option.
(A) Give more flexibility to government.
(B) Restricts countries in conducting monetary policies.
(C) Government intervenes to comes gaps in BOP.
(D) Automatically takes care of surplus and deficit in BOP.
(E) Speculator attack on currency.
Choose the correct answer from the options given below: