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Questions › CUET-PG › CUET-PG 2025 › Q71
4 marks, −1International Economics › Balance of payments and exchange rates › Foreign exchange markets and instrumentsModerateabout 1 min

CUET-PG 2025 Question 71: Balance of payments and exchange rates

Match List-I (Concepts) with List-II (Their meaning): List-I: (A) Foreign Exchange Swaps; (B) Forward Transaction; (C) Foreign Exchange Futures; (D) Hedging. List-II: (I) is a forward contract for a standardized currency amount and selected calendar dates traded on an organized market; (II) refers to the avoidance of a foreign exchange risk or covering of an open position; (III) refers to a spot sale of a currency combined with a forward repurchase of the same currency as part of a single transaction; (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.

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Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.

What this question tests

This question is on Foreign exchange markets and instruments, part of Balance of payments and exchange rates in International Economics.

Where currencies are traded and the instruments used to hedge exchange risk.

TestStop has 8 past-paper questions on this subtopic.

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