1. Foreign debt is likely to increase.
2. Foreign debt is likely to remain unaffected
3. Foreign debt is likely to decrease.
4. The foreign-trade deficit might increase
5. None of the above
Foreign debt is likely to increase.
1. A relatively stable rupee.
2. A low interest rate.
3. A volatile rupee in foreign exchange market
4. A monetary policy directed towards domestic price stabilisation
5. Only C and D
A volatile rupee in foreign exchange market
1. That RBI is interested in maintaining a fixed price of rupee with respect to dollar.
2. That monetary policy is dependent upon fiscal policy
3. That RBI will intervene in currency market if slide in value of rupee is ‘too fast’
4. That Government of India (Gol) will only regulate policies to minimize untoward fluctuations in foreign currency market.
5. None of the above.
That RBI will intervene in currency market if slide in value of rupee is ‘too fast’
1. Regulation of bank rate.
2. Fixation of value of rupee at a desired level with respect to dollar.
3. Taxing locked in export earnings.
4. By directly intervening in the foreign exchange market.
5. None of the above
Fixation of value of rupee at a desired level with respect to dollar.
1. The value of rupee will appreciate.
2. The value of rupee will depreciate.
3. Indian rupee will remain unaffected.
4. Value of rupee depends upon multiple of other factors and its effects would be difficult to predict.
5. Only A and D
Value of rupee depends upon multiple of other factors and its effects would be difficult to predict.
1. Reverberations in currency market because of sharp changes in asset value
2. Over valuation of technology stocks
3. Irrational behavior of financial market leading to occasional boom-bust cycle
4. Unjustified strength of yen in mid 1990s
5. All of the above
Irrational behavior of financial market leading to occasional boom-bust cycle
1. To ease the pressure on monetary and fiscal policy in globalised capital market
2. To control capital account convertibility of currency
3. To make capital control more porous.
4. Only A and C
5. All the above
To ease the pressure on monetary and fiscal policy in globalised capital market
1. Rupee should be made fully convertible on capital account.
2. Fixed exchange rate regime is best suited for India
3. India’s managed float mechanism is best in present circumstance
4. Rupees value should be fixed to a basket of international currency.
India’s managed float mechanism is best in present circumstance
1. To buy good clothes for her
2. To give her away to his friends
3. To show her off to his friends
4. To share his problems with her
5. None of these
To show her off to his friends
1. She helped the merchant during tough times
2. She helped the merchant in his business
3. She made the merchant feel proud
4. She contributed to the merchant’s wealth
5. None of these
She helped the merchant during tough times