Balance of Payments

Define BP{

BOP is a flow concept.

• Yes

• No

Which of these lead to a credit in the BOP

• import of goods

• import of services

• export of goods

• unilateral transfer made to resident of another country

When i receive a gift from my uncle in the US in cash, it will lead to a _______ in the BOP

Current account items include:

• export and import of goods

• export and import of services

• international income payments and receipts

• capital payments and receipts

When India takes a loan from IMF, it is a..

• capital payment

• capital receipt

• transfer payment

• transfer receipt

Balance of Trade is calculated as:

• exports - imports

• exports of visibles - import of visibles

• Exports of goods and services - import of goods and services

How do you calculate balance of current account?

Give two reasons for disequilibrium in the BOP

What is FDI?