Question 1

Purchase of a property by an Indian resident abroad can be recorded on the ___________ side of ___________ account of Balance of Payments. (Choose the correct option to fill in the blanks)

Accepted Answer

(B) Credit, Current

Question 2

Read the following statements – Assertion (A) and Reason (R). Choose one of the correct alternatives given below : Assertion (A) : The Balance of Payments is in surplus, if autonomous receipts are greater than autonomous payments. Reason (R) : Autonomous transactions are determined by the difference in the Balance of Payments. Alternatives :

Accepted Answer

(D) Assertion (A) is false, but Reason (R) is true.

Question 3

Gifts and remittances sent abroad are recorded on the ______ side of the ________ account in Balance of Payment. (Choose the correct alternative to fill up the blanks)

Accepted Answer

(D) debit, current

Question 4

An Indian company receives a loan from a company located abroad. This transaction would be recorded on the ________ side of __________ account in India's Balance of Payment. (Choose the correct alternative to fill up the blanks)

Accepted Answer

(D) Debit, Capital

Question 5

Read the following statements carefully : Statement 1 : Borrowings by a nation from the World Bank to finance Balance of Payment (BoP) deficit will be recorded in the capital account. Statement 2 : Autonomous transactions are independent of the condition of Balance of Payment (BoP) account. In light of the given statements, choose the correct alternative from the following :

Accepted Answer

(D) Both Statements 1 and 2 are false.

Balance of Payments

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