Advertisements
Advertisements
प्रश्न
Briefly explain the effect of the following on the Balance of Payment of a country.
Appreciation in the domestic exchange rate.
उत्तर
Appreciation of the domestic exchange makes exports more expensive, leading to decreased export revenues; a strong home currency makes imports cheaper for domestic consumers, thereby increasing imports. The current account deficit follows from this. It affects BOP adversely.
APPEARS IN
संबंधित 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.
Give the meaning of balance of payments.
What is meant by the depreciation of domestic currency?
Distinguish between current account and capital account
Distinguish between an autonomous transaction and accommodating transactions of the balance of payments account.
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
Salaries of Indians working in the American Embassy in India
Name the broad categories of transactions recorded in the 'capital account' of the Balance of Payments Account
Name the broad categories of transactions recorded in the 'current account' of the Balance of Payments Accounts
Where is 'borrowings from abroad' recorded in the Balance of Payments Accounts? Give reasons.
State the components of capital account of balance of payments.
Distinguish between Autonomous and Accommodating transactions of Balance of Payments account.
Identify the correctly matched pair of items in Column A to those in Column B:
| Column A | Column B | ||
| 1 | Total of factor payments | (a) | Value Added Method |
| 2 | Value Added | (b) | Stock Variable |
| 3 | Festival gifts | (c) | Transfer payments |
| 4 | Final expenditure incurred by the government | (d) | Consumption expenditure |
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.
Dividend paid to foreigners on their investment in shares in India.
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?
