Topics / Economy
Balance Of Payments
Asked 4 times in UPSC Prelims · first asked 2006 · last asked 2014
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With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
1. Balance of trade
2. Foreign assets
3. Balance of invisibles
4. Special Drawing Rights
Select the correct answer using the code given below.
2014Economy
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account? 1. Balance of trade 2. Foreign assets 3. Balance of invisibles 4. Special Drawing Rights Select the correct answer using the code given below.
Explanation
In the context of Balance of Payments, the Current Account includes the Balance of Trade and Balance of Invisibles.
The balance of payments of a country is a systematic record of
2013Economy
The balance of payments of a country is a systematic record of
Explanation
The balance of payments of a country is a comprehensive report that details all financial transactions between the country and other nations. It includes payments for exports, imports, services, financial investments, and transfers of funds.
Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment. Select the correct answer using the codes given below.
2013Economy
Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment. Select the correct answer using the codes given below.
Explanation
In the Indian economy, the Capital Account includes foreign loans, foreign direct investment, and portfolio investment. In this question, the options provided were foreign loans, foreign direct investment, private remittances, and portfolio investment. The correct combination for the Capital Account is foreign loans, foreign direct investment, and portfolio investment, which corresponds to option (b).
Assertion (A): Balance of Payments represents a better Picture of a country economic transactions with the rest of the world than the Balance of Trade
Reason (R): Balance of Payments takes into account the exchange of both visible and invisible items whereas balance of Trade does not.
2006Economy
Assertion (A): Balance of Payments represents a better Picture of a country economic transactions with the rest of the world than the Balance of Trade Reason (R): Balance of Payments takes into account the exchange of both visible and invisible items whereas balance of Trade does not.
Explanation
The Balance of Payments of a country includes the visible account, invisible account, and capital account. On the other hand, the Balance of Trade is calculated as the difference between the export of goods and import of goods. When a country's imports exceed its exports, the deficit can be offset by invisible items such as remittances from Non-Resident Indians and foreign direct investment.