Advertisements
Advertisements
Question
Where will the sale of machinery to abroad be recorded in the Balance of Payments Accounts? Give reasons.
Solution
Basically, the balance of payments on a current account is a statement of actual receipts and payments in a short period. It includes the value of imports and exports of both goods and services. Here, the sale of machinery to a foreign country is an export of goods which leads to an inward flow of foreign exchange. Hence, it is treated as a positive item in the current account of the balance of payments.
APPEARS IN
RELATED QUESTIONS
Explain the distinction between autonomous and accommodating transactions in balance of payments. Also explain the concept of balance of payments 'deficit' in this context
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
Give the meanings of 'autonomous' transactions and 'accommodating' transactions in the Balance of Payments Accounts.
Distinguish between 'autonomous' and accommodating' Balance of Payments transactions.
How is balance of payment 'deficit' measured? Explain.
Where will sale of machinery to abroad be recorded in the balance of payment accounts?
______ 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.
Which of the following is not the component of Balance of Payment?
Accommodating items are also called ______
Mention any one difference between Balance of Trade and Balance of Payment.
Briefly explain the effect of the following on the Balance of Payment of a country.
Inflationary pressure in the economy
If autonomous payments are higher than autonomous receipts, how can BOP be brought into balance?
