Balance of Payments
Economics ⇒ International Trade and Globalisation
Balance of Payments starts at 11 and continues till grade 12.
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Define the capital account in the Balance of Payments.
Describe the relationship between the Balance of Payments and exchange rates.
Explain the difference between autonomous and accommodating transactions in the Balance of Payments.
Explain the difference between the current account and the capital account in the Balance of Payments.
Explain the impact of a persistent current account deficit on a country's economy.
Explain the term 'autonomous transactions' in the Balance of Payments.
Explain the term 'Balance of Trade'.
A country has the following data for a year: Exports of goods = ₹500 crore, Imports of goods = ₹600 crore, Exports of services = ₹200 crore, Imports of services = ₹100 crore. Calculate the balance of trade and the balance on goods and services.
The Balance of Payments consists of which two main accounts? (1) Current Account and Capital Account (2) Revenue Account and Expenditure Account (3) Assets Account and Liabilities Account (4) Income Account and Expense Account
Which of the following is a component of the capital account? (1) Export of goods (2) Portfolio investment (3) Import of services (4) Transfer payments
Which of the following is a credit item in the current account? (1) Import of machinery (2) Payment of interest abroad (3) Export of software services (4) Purchase of foreign shares
Which of the following is a unilateral transfer? (1) Export of cars (2) Import of oil (3) Remittance sent by an Indian working abroad (4) Foreign direct investment
Fill in the blank: If a country receives more remittances from abroad than it sends, it will have a ________ in the current account under transfers.
Fill in the blank: If the value of imports of goods exceeds the value of exports of goods, the country has a ________ in its balance of trade.
Fill in the blank: The ________ account records exports and imports of goods and services, income and current transfers.
Fill in the blank: The Balance of Payments is a ________ statement, not a budget.
State whether the following statement is True or False: 'A surplus in the capital account can offset a deficit in the current account.'
State whether the following statement is True or False: 'A surplus in the current account always leads to an increase in foreign exchange reserves.'
State whether the following statement is True or False: 'Export of services is recorded as a credit in the current account.'
State whether the following statement is True or False: 'The capital account includes both short-term and long-term capital movements.'
