Advertisements
Advertisements
प्रश्न
Indian investors lend abroad. Answer the following questions :
(a) In which sub-account and on which side of the Balance of Payments Account such lending is recorded? Give reasons.
(b) Explain the impact of the lending on market exchange rate.
उत्तर
(a) Indian investors lending abroad leads to an outward flow of foreign exchange and is hence treated as a negative item in the capital account of balance of payments.
(b) This will reduce the supply of foreign currency from SS to S′S. Hence, the new equilibrium is reached at Point E′ with a new exchange rate OR1.
APPEARS IN
संबंधित प्रश्न
Explain the distinction between autonomous and accommodating transactions in balance of payments. Also explain the concept of balance of payments 'deficit' in this context
Indian investors borrow from abroad. Answer the following:
a. In which sub-account and on which side of the Balance of Payments Account will this borrowing be recorded? Give reason.
b. Explain what is the impact of this borrowing on exchange rate.
Give the meaning of balance of payments.
Will the following be included in the domestic product of India? Give reasons for your answer.
Salaries of Indians working in the Russian Embassy in India
Will the following be included in the domestic product of India? Give reasons for your answer.
Profit earned by a branch of State Bank of India in Japan
Will the following be included in the national income of India? Give reasons for your answer
Financial assistance to flood victims
Name the broad categories of transactions recorded in the 'current account' of the Balance of Payments Accounts
What is 'current account deficit' in the balance of payments?
Explain the concept of 'deficit' in balance of payments.
State the components of capital account of balance of payments.
Answer the following question.
Discuss the various components of the current account of the balance of payment.
______ refers to the currency notes and coins being issued by the monetary authorities of India (RBI and government of India) as a legal medium of payment.
The following information is given for an imaginary country:
| Current Account | Amount (in ₹’000 Crore) |
| Visible Exports | 100 |
| Visible Imports | 150 |
| Invisible Exports | 70 |
| Invisible Imports | 30 |
| Net current transfer balance | 15 |
Balance on current account will be ____________ of ₹ ______ thousand Crore.
Categorise the following item into Current Account or Capital Account of Balance of Payment of India.
Acquisition of land in India by an American firm
Categorise the following item into Current Account or Capital Account of Balance of Payment of India.
Use of transport by Indian tourists in Dubai
Categorise the following item into Current Account or Capital Account of Balance of Payment of India.
Loan taken by India from International Monetary Fund (IMF) to cover its BOP deficit
If autonomous payments are higher than autonomous receipts, how can BOP be brought into balance?
