Question : How can RBI help in bringing down the foreign exchange rate which is very high?

Option 1: Buying foreign exchange from market
 

Option 2: Selling foreign exchange from its reserves
 

Option 3: Increasing money supply in the economy

Option 4: None

Question : Which of the following steps should taken by the central bank if there is excessive rise in the foreign exchange rate?

Option 1: Supply foreign exchange from its stock
 

Option 2: Demand more of other foreign exchange
 

Option 3: Not intervene in the market as exchange rate is determined by the market forces

Option 4: Help central government to stabilize foreign exchange rate

Question : A ________ exchange rate is determined by the forces of supply and demand in the foreign exchange market.

Option 1: fixed
 

Option 2: floating
 

Option 3: managed

Option 4: pegged

Question : Economic globalization in South Asia has led to an increase in what type of investment?  
 

Option 1: Local investment  
   

Option 2: Foreign direct investment  
   

Option 3: Government investment  

Option 4: Informal investment  

Question : Which of the following is an example of a capital outflow in the balance of payments?

Option 1: Export of goods and services
 

Option 2: Import of goods and services
  

Option 3: foreign investment in domestic assets

Option 4: Domestic investment in foreign assets