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 :
Answer & explanation
Correct answer: option 2
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.