204) What is the objective of hedging in international foreign exchange transactions?

To bear the risk in foreign exchange

To secure risk in foreign exchange

Speculation in foreign exchange

Arbitrage operations in foreign exchange

Answer is:

Speculation in foreign exchange

1-Jan-96

1-Jan-97

1-Jan-98

1-Jan-99

Answer is:

Rs. 450 million

Rs. 300 million

Rs. 250 million

None of the above

Answer is:

Borrowing by scheduled banks from the Central Bank

Purchase and sale of Government Securities by the Central Bank

Lending by Commercial Banks to industry and trade

Deposit mobilization

Answer is:

Level of economic activities and employment is low

Gold is likely to flow out side the country

Price level is rising

BOP is unfavourable

Answer is: