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BALANCE OF PAYMENT
BALANCE OF PAYMENT
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1
A country that has a deficit in its current account may finance it --
all of the above.
by selling foreign exchange ( called official reserve sale )
by selling assets
by borrowing abroad
2
Difference between value of exports and imports of goods and services is called trade balance.
True
False
3
profits received from investments abroad is recorded in capital account.
True
False
4
------transactions are undertaken to cover the deficit or surplus in autonomous transactions
accomodating account
capital account
autonomous account
current account
5
In BOP, repayment of loans by Indian government to Japanese govt. will be reflected as credit item.
True
False
6
Accounting statement that gives a systematic record of the economic transactions, between residents of various country
none of these
balance of trade
balance of payment
govt. budget
7
Which of the following items will be entered as a credit item in the BOP of a country ?
portfolio investments from abroad
transfer payments to abroad
purchase of foreign securities
imports of goods & services
8
-----of the BOP is the record of trade in goods & services and transfer payments.
both of these
currrent account
capital account
none of these
9
Autonomous transactions take place in capital account only
False
True
10
The decrease in official reserves is called the overall -------------
deficit in BOP
balance in BOP
none of these
surplus in BOP
11
Official reserves transactions are relevant under--------
both (b) & (c)
fixed exchange rate system
floating exchange rate system
managed floating exchange rate system
12
Foreign investments are recorded in the capital account of balance of payments account.
True
False
13
Which of the following is not recorded in the capital account of BOP?
gifts,remittances & grants
equity capitals
govt. aid
offshore funds
14
Balance of payments ' deficit' is the excess of ---
autonomous payments over autonomous receipts
accommodating payments over a accommodating receipts
capital account payments over capital account receipts
current account payments over current account receipts
15
current account surplus (CAS) means--
both (a) &(b)
the value of exports of goods is more than the value of imports of goods.
the nation is a borrower from other countries.
the nation is a lender to the rest of the world
