Advertisements
Advertisements
Question
Will the following be included in the national income of India? Give reasons for your answer
Profit earned by the branches of a foreign bank in India
Solution
Profit earned by the branches of the foreign bank in India is not included in the estimation of national income because it is considered as factor income paid to abroad.
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
Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called ______.
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.
Where is 'borrowings from abroad' recorded in the Balance of Payments Accounts? Give reasons.
Give the meanings of 'autonomous' transactions and 'accommodating' transactions in the Balance of Payments Accounts.
Explain the concept of 'deficit' in balance of payments.
Distinguish between Autonomous and Accommodating transactions of Balance of Payments account.
Balance of Payments of an economy records ____________ for a fiscal year.
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?
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 |
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.
Mention any one difference between Balance of Trade and Balance of Payment.
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.
List different components of Balance of Payment on current account and capital account.
