Balance of Payment

_____ is the difference between the value of goods sold to the rest of the world and the value of goods imported from the rest of the world

• Balance of Payment

• Balance of Trade

• Balance of Current Account

• Balance of Capital Account

Gift and remittances to abroad are recorded on the

• Credit side of Current Account

• Debit side of Current Account

• Credit side of Capital Account

• Debit side of Capital Account

Export of machinery is recorded on the

• Debit side of Current Account

• Credit side of Current Account

• Debit side of Capital Account

• Credit side of Capital Account

Import of machinery is recorded in the _____ account and borrowings from abroad are recorded in the ____ account.

• Current, Capital

• Capital, Capital

• Current, Current

• Capital, Current

A company located in India receives a loan from a company located abroad how was this transaction recorded in India’s balance of payment account? (choose the correct alternative)

• Credit side of Capital Account

• Debit side of Capital Account

• Credit side of Current Account

• Debit side of Current Account

An Indian company located in India invest in a company located abroad this transaction is entered in India’s balance of payment accounts on

• Credit side of Capital Account

• Debit side of Capital Account

• Credit side of Current Account

• Debit side of Current Account

The balance of trade shows a deficit of Rs.5000 crores and the value of imports of Rs.9000 crores. what is the value of exports

If the value of exports of a country is Rs. 1000 crores and the value of imports is Rs.600 crores how much will be the trade balance

Assertion (A): The difference between the value of exports and imports of goods and services is called trade balance

Reason (R): Trade balance is the difference between the value of exports of goods and imports of goods only it does not include exports and imports of services

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true but Reason (R) is the not correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false

• Assertion (A) is false but Reason (R) is true

Assertion (A): 'Make in India' programme will have a favorable effect on the balance of payments position of India.

Reason (R): 'Make in India' will increase supply (inflow) of foreign exchange in India causing improvement in the balance of payments position.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

• Both Assertion (A) and Reason (R) are true but Reason (R) is the not correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is false

• Assertion (A) is false but Reason (R) is true