List of top Economics Questions on Foreign exchange market

For a hypothetical economy, assuming there are only two firms (X and Y) with equal values of Gross Value Added (GVA). On the basis of the following data, estimate the values of Domestic Sales by firm X:

Read the following statements carefully:
Statement 1: Under the flexible exchange rate system, a deficit or surplus in the Balance of Payments is automatically corrected.
Statement 2: Under the flexible exchange rate system, there is always a possibility of over/under valuation of currency.
In the light of the above given statements, choose the correct option from the following:

Explain the likely impact of implementation of “Exports Promotion Scheme” of Government of India on the Balance of Payment (BoP) of the country. (Keeping other factors constant)
State the meaning of Trade Surplus.

Read the following statements – Assertion and Reason (R). Choose the correct option from those given below: Assertion : Increase in exchange rate implies that the price of foreign currency in terms of domestic currency has increased. Reason (R): Balance of trade records the inflows and outflows of goods.

``Unilateral Transfers'' are recorded in which account of BOP?

When the exchange rate of domestic currency rises in a managed floating system, it is called:

Identify, which of the following is true at the Break Even level of Income.

Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Concepts} & \textbf{Their meaning} \\ \hline \text{(A) Foreign Exchange Swaps} & \text{(I) is a forward contract for standardized currency amounts and selected calendar dates traded on an organized market.} \\ \hline \text{(B) Forward Transaction} & \text{(II) refers to the avoidance of a foreign exchange risk or covering of an open position.} \\ \hline \text{(C) Foreign Exchange Futures} & \text{(III) refers to a spot sale of a currency combined with a forward repurchase of the same currency as part of a single transaction.} \\ \hline \text{(D) Hedging} & \text{(IV) refers to an agreement today to buy or sell a specified amount of a foreign currency at a specified future date at a rate agreed upon today.} \\ \hline \end{array}\] Choose the correct answer from the options given below:

Read the following statements carefully:
Statement 1: The price of a given currency in terms of another is known as bank rate.
Statement 2: Demand curve for foreign exchange is a downward sloping curve.

"A theory of international exchange which holds that the price of similar goods in different countries is the same " is the concept of :

Select the correct sequence that lead to the need for the introduction of New Economic policy 1991 in India:
(A) Foreign exchange reserves dropped 
(B) World Bank gave loan to manage crisis 
(C) New economic policy 1991 announced 
(D) India met with an economic crisis related external debt
 Choose the correct answer from the options given below: