Short Answer Type

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How can increase in foreign direct investment affect the price of foreign exchange? 


An increase in foreign direct investment leads to increase in the supply of foreign currency, thereby, the price of foreign exchange falls.

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What is a Government Budget? 

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What are demand deposits? 

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Explain the relationship between income of the buyers and demand for a good.

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Distinguish between revenue deficit and fiscal deficit.

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Give one example of “externality” which reduces welfare of the people. 

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Distinguish between revenue expenditure and capital expenditure in Government budget. Give an example of each. 

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Give two examples of indirect taxes. 

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Explain any one objective of Government Budget. 

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Explain the problem of double coincidence of wants faced under barter system. How has money solved it? 

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