Balance of Payment

Who out of the following is not included in "Residents" in BOP transactions?

• Firms

• Foreign military personnel

• Government agencies

• Individuals

Autonomous transactions take place on

• Current Account

• Capital Account

• Both (a) and (b)

• Neither (a) nor (b)

What is the primary component of BOP transactions?

• Goods and services

• Financial transactions

• Gifts and grants

• Remittances

Which account records international trade in goods and services?

• Current Account

• Capital Account

• Financial Account

• Official Reserve Account

What is the impact of a surplus in the Current Account?

• Decrease in foreign exchange reserves

• Increase in foreign exchange reserves

• No impact on foreign exchange reserves

• Depends on the capital account

What is the effect of a trade surplus on a country's currency value?

• Decrease in currency value

• Increase in currency value

• No impact on currency value

• Depends on the capital flow

Balance of Payment 'deficit' is the excess of:

• current account payments over current account receipts

• Capital Account payments over capital account receipts

• Autonomous payments over autonomous receipts

• Accomodating payments over a accommodating receipts

'Import of Machinery' is recorded in the _________ Account and Borrowings from abroad' is recorded in the __________ Account

• Current, capital

• Capital, current

• Capital , capital

• Current, current

Foreign Exchange transactions dependent on other foreign exchange transactions are called:

• Current account transactions

• capital account transactions

• autonomous transactions

• accomodating transaction

In balance of payment, repayment of loans by Indian government to Japanese Government will be reflected as credit item

• True

• False