Match the items of List – I with items in List – II and select a correct code : Codes : a b c dList – I List – II a. Current Account i. Official Capital b. Capital Account ii. Reserves from foreign countries c. Unilateral Payments iii. Reparations d. Official Statement Account iv. Visible Exports and Imports
iv i iii ii
The current account records trade in goods and services and income flows. Its largest component is the visible trade account, that is, visible exports and imports of merchandise: a matches with iv.
The capital account records changes in a country's foreign assets and liabilities, such as foreign investment, loans and official capital flows (borrowings and lending by governments and official bodies): b matches with i.
Unilateral payments (transfers) are one-way payments for which nothing is received in return, such as gifts, grants, remittances and war reparations: c matches with iii.
The official settlement account (printed here as Official Statement Account) shows the change in the country's official reserve assets, such as foreign exchange and gold held by the central bank, which settle the overall surplus or deficit: d matches with ii.
The correct code is a-iv, b-i, c-iii, d-ii.
Hence, iv i iii ii.
Similar Questions
In computation of balance of payments, overall balance of payments =
Which of the following can be included in the current account of the balance of payments ?
(i) Purchase of goods from abroad
(ii) Sale of services abroad
(iii) Workers’ remittances from aboard
(iv) Sale of copyright to foreigners
(v) Direct investment in equity capital
Codes :
Which of the following is not one of the components of ‘International Reserve’ ?
Important Questions from Balance of payments (BOP)
Which of the following statements is correct?
Which of the following statements is INCORRECT?
Balance of Trade is measured as:
- If there is a balance of payments deficit then in a floating exchange rate system :
- Devaluation, will improve the balance of payment deficit, if sum of elasticity of exports and imports of the devaluing country is :
