QUESTION- Prelims-IAS – ECONOMICS MCQ-31
- Capital Account tracks the movement of funds for investments and loans into and out of a country.
- CAD may results into devaluation of currency.
- CAD is the difference between the country’s export earnings plus inward remittances minus imports and outward remittances.
- FII is known as hot money and fly by night money.
- Tapering of quantitative easing will lead to flight of dollars from the economy.
- REER is generally inflation adjusted NEER. As RBI has now moved on to CPI as its main indicator, so the same is used now used for calculating REER
- Increase in supply of foreign exchange indicates that domestic currency is relatively in more demand presently thus leading to its appreciation.