Match List I with List II List I

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Match List I with List II

List I	List II
A. Autonomous transaction	I. Current Account
B. Appreciation	II. Import of petroleum
C. Managed floating	III. Price of domestic currency increases
D. Purchase of machinery	IV. Central Bank intervenes

Choose the correct answer from the options given below :

Options:

A-III, B-II, C-IV, D-I

A-II, B-III, C-IV, D-I

A-IV, B-I, C-II, D-III

A-I, B-II, C-III, D-IV

Correct Answer:

A-II, B-III, C-IV, D-I

Explanation:

The correct answer is option (2) : A-II, B-III, C-IV, D-I

List I	List II
A. Autonomous transaction	II. Import of petroleum
B. Appreciation	III. Price of domestic currency increases
C. Managed floating	IV. Central Bank intervenes
D. Purchase of machinery	I. Current Account

Reasoning :

A - II : Autonomous transaction is related to the import of petroleum, which is a current account transaction.

B-III : Appreciation corresponds to the increase in the price of domestic currency.

C- IV : Managed floating is associated with Central Bank intervention.

D-I : Purchase of machinery is a current account transaction.