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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 :
Suppose that, the Balance of Trade of a nation exhibits a deficit of Rs. 50,000 crore. The import of visible items are five times of the exports of visible items. The value of exports of visible items would be Rs. ______ crore. (Choose the correct alternative to fill up the blank)
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)
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 :
As per the Reserve Bank of India (RBI) press report, dated 22nd June, 2022 : “Net Foreign Portfolio Investment (FPI) recorded an outflow of US$15.2 billion mainly from the equity market.” The above transaction will be recorded in the _____ account on _____ side of Balance of payments account of India. (Choose the correct alternative)
Assuming that, the following data is given for an imaginary economy : The balance of Trade from 2020 to 2021 _____ by Rs. _____ crore. (Choose the correct alternative)
As per the Reserve Bank of India (RBI) press report, dated 22nd June, 2022 : "Net Foreign Portfolio Investment (FPI) recorded an outflow of US$15.2 billion mainly from the equity market." The above transaction will be recorded in the ____ account on _____ side of Balance of payments account of India. (Choose the correct alternative)
Assuming that, the following data is given for an imaginary economy : The balance of Trade from 2020 to 2021 ____ by Rs. ____ crore. (Choose the correct alternative)
Keeping other factors constant, if the price of crude oil falls in the international market, it may lead to __________. (Choose the correct alternative to fill up the blank)
Read the following statements carefully : Statement 1 : Import of gold from Dubai will be recorded on the debit side of the current account in Balance of Payments of India. Statement 2 : Outflow of Foreign Institutional Investment (FII) from Indian stock markets will be recorded on the credit side of the capital account. In light of the given statements, choose the correct alternative from the following :
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)
Read the following statements carefully : Statement 1 : Balance of Payment account is always balanced in accounting sense. Statement 2 : Autonomous transactions, restore balance in Balance of Payment account. In light of the given statements, choose the correct alternative from the following :
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)
'Deficit' in Balance of Payment (BOP) refers to the excess of ______. (Choose the correct alternative)
Giving valid reasons, state whether the following statements are true or false : (i) Dividend received from investment abroad is recorded on the credit side of the capital account. (ii) Depreciation of the Indian Currency will lead to promotion of Indian exports. Distinguish between Autonomous transactions and Accommodating transactions.
“As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth Rs. 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 – 9th June, 2023.” The above mentioned transactions will be recorded on __________ side of ___________ account of Balance of Payments of India. (Choose the correct alternative to fill in the blanks)
Surplus in Balance of Payments (BOP) refers to the excess of ___________. (Choose the correct alternative to fill in the blank)
Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of Rs. 500 crore. The values of merchandise exports are Rs. 1200 crore and transfer payments are Rs. 400 crore. The value of merchandise imports would be Rs. __________ crore. (Choose the correct alternative to fill in the blank)
"As per the National Stock Exchange (NSE) data, dated 9th June, 2023, there was a net selling off worth Rs. 309 crore by Foreign Institutional Investors (FIIs) over the period of one month i.e., 9th May, 2023 - 9th June, 2023." The above mentioned transactions will be recorded on __________ side of __________ account of Balance of Payments of India. (Choose the correct alternative to fill in the blanks)
Surplus in Balance of Payments (BOP) refers to the excess of __________. (Choose the correct alternative to fill in the blank)
Identify which of the following will appear on the debit side in the Capital Account of India's Balance of Payments.
Study the following figure carefully and choose the correct alternative to fill in the blank : Balance of Payments Account |-- Current Account | |-- Trade in merchandise | |-- ____________ | |-- Transfer Payments |-- Capital Account Alternatives :
"Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account." Justify the given statement with valid explanation. "Depreciation of currency may promote exports of a nation." Defend or refute the given statement with valid arguments.
Study the following figure carefully and choose the correct alternative to fill in the blank : Alternatives :
According to the Reserve Bank of India's (RBI) Statistical Supplement released on 19th May, 2023 : India's foreign exchange reserves grew for the third straight week and reached near an approximate level of $ 600 billion. The above situation will _________ the __________ side of Balance of Payments account of India. (Choose the correct alternative to fill in the blanks)
Identify the correct pair of statements given in Column I with the related terms in Column II : Alternatives :
Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative from those given below : Assertion (A) : In case of an unfavourable Balance of Trade, the Current Account of the nation may be in surplus. Reason (R) : Net invisible receipts of a nation can exceed the Net visible receipts. Alternatives :
According to the Reserve Bank of India's (RBI's) Statistical Supplement released on 19th May, 2023 : "India's foreign exchange reserves grew for the third straight week and reached near an approximate level of $ 600 billion." The above situation will ________ the ________ side of Balance of Payments account of India. (Choose the correct alternative to fill in the blanks)
Identify the correct pair of statements given in Column I with the related terms in Column II :
Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative from those given below : Assertion (A) : In case of an unfavourable Balance of Trade, the Current Account of the nation may be in surplus. Reason (R) : Net invisible receipts of a nation can exceed the Net visible receipts.
State the meaning of autonomous and accommodating items, under Balance of Payments of India, with the help of an example.
If in an economy the Balance of Trade is showing a deficit of Rs. 200 crore and the value of import is Rs. 900 crore, then the value of exports would be Rs. _______ crore. (Fill up the blank with correct alternative.)
The measurement of Balance of Payments deficit is based on _______ transactions. (Fill up the blank with correct alternative.)
"Trade Deficit must exist, if a country is facing situation of Current Account Deficit (CAD)." Defend or refute the above mentioned statement with valid arguments.
The measurement of Balance of Payments deficit is based on ______ transactions. (Fill up the blank with correct alternative.)
If in an economy the Balance of Trade is showing a deficit of Rs. 200 crore and the value of import is Rs. 900 crore, then the value of exports would be Rs. ______ crore. (Fill up the blank with correct alternative.)
Define with suitable examples, autonomous transactions and accommodating transactions in the Balance of Payments of an economy.
In the context of Current Account transactions of Balance of Payment, identify the incorrect statement from the following : (Choose the correct option)
If a country exports goods worth of Rs. 600 crores and imports goods worth of Rs. 450 crores, the value of Balance of Trade of the country would be _______ of Rs. _______ crores.
"The Government had launched Incredible India Campaign to promote tourism in various parts of the country." Elaborate the impact of this campaign on foreign exchange reserves and Balance of Payment of India.
If a country exports goods worth of Rs. 600 crores and imports goods worth of Rs. 450 crores, the value of Balance of Trade of the country would be ______ of Rs. ______ crores.
Read the following text carefully : Balance of Payments (BoP) systematically summarise, the economic transactions of an economy with the rest of the world, over a given period of time. The BoP can be broadly divided into two accounts namely : - current account - capital account The current account measures the transfer of goods, services, income and transfers between an economy and rest of the world. The current account may be sub-divided into merchandise account and invisible account. Merchandise account consists of transactions related to export and import of goods. In the invisible account, there are three broad categories : - Non-factor services such as travel, transportation, insurance etc. - Transfer which do not involve any value in exchange. - Income which includes compensation of employees and investment income. The capital account reflects the net changes in financial claims on rest of the world. The capital account can be broadly broken up into two categories : - Non-debt flows such as direct and portfolio investments. - Debt flows such as external assistance, commercial borrowings, non-resident deposits etc. The sum of the two accounts indicates the overall balance, which could be either be in surplus or deficit. The movement in overall balance is reflected in changes in international reserves of the country. Source : https : // mospi.gov.in/109-balance – payments (adopted and modified) On the basis of the given text and common understanding, answer the following questions : (a) Define Balance of Payments. (b) Differentiate between the two accounts of Balance of Payments. (c) Give the meaning of Balance of Payments deficit with formula.
Elaborate any two components of the Capital Account under the Balance of Payments Account. Distinguish between Autonomous transactions and Accommodating transactions.
From the following, identify the situation which indicates the Current Account Surplus (CAS) in Balance of Payments (BOP) account of a nation.
"The Indian economy has witnessed a sharp turnaround during 2023 - 24 with Foreign Direct Investments (FDI) inflows of US 32.4 Bn." (i) Distinguish between the above mentioned economic variables. (ii) In which account of Balance of Payments will the given variables be entered and why ? Explain how Accommodating Transactions differ from Autonomous Transactions.
Distinguish between autonomous transactions and accommodating transactions in the Balance of Payments of the economy.
Distinguish between Balance Payment and Balance of Trade.
Distinguish between Current account and Capital account.
Read the following statements – Assertion (A) and Reason (R) carefully. Choose the correct option from those given below : Assertion (A) : Shipping service provided by an Indian company to foreign companies will be recorded in current account of Balance of Payments (BOP). Reason (R) : Current account of Balance of Payments (BOP) does not alter the status of the asset or liabilities of the residents of India.
(i) Distinguish between Balance of Payments and Balance of Trade. (ii) Define Current Account Surplus. (i) Using suitable example, distinguish between Foreign Direct Investments (FDI) and Foreign Institutional Investments (FII). (ii) State one example of External Assistance as a component of capital account.
(i) Explain the effect of appreciation of domestic currency on imports of a nation. Provide an example to support your explanation. (ii) Explain any two components of Current Account under Balance of Payments. (i) ``A rise in price of foreign exchange leads to fall in demand for foreign exchange, other factors remaining constant.'' Do you agree with the given statement ? Give valid reasons in support of your answer. (ii) As per the statement given by the Governor of Reserve Bank of India (RBI) dated 10th August 2023 : ``The inflows from net commercial borrowings have been US $ 60 billion during April - June 2023.'' Identify, the sub-account and the side of Balance of Payments where the above stated transactions would be recorded. State valid reasons in support of your answer.
Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below : Assertion (A) : Unilateral Transfers are recorded in the Current Account of the Balance of Payments (BoP) of a nation. Reason (R) : Capital account records transactions which cause a change in the assets or liabilities of the country.
Michel, an entrepreneur of Country Zeta, borrowed 30 Billion from an International Financial Institution to manage the ongoing Balance of Payments. Samuel, an Economics student categorised both of these transactions as 'autonomous transactions' in the BoP account of the country. Do you agree with his classification ? Justify your answer with valid reasons.
(a) Explain the likely impacts of the `Make in India' policy initiated by Government of India on the Balance of Payments (BoP) of India (assuming all other factors constant). (b) State the meaning of Balance of Payment (BoP) surplus and deficit.
(a) Explain the likely impact of implementation of `Exports Promotion Scheme' of Government of India on the Balance of Payment (BoP) of the country. (Keeping other factors constant) (b) State the meaning of Trade Surplus.
Read the following statements carefully : Statement I : Trade in services includes both factor income and non-factor income transactions. Statement II : Current Account includes transactions related to goods, services and unilateral transfers. In the light of the given statements, choose the correct option from the following :
"US administration has recently imposed tariff to the magnitude of 50%." In the light of given statement, explain the likely impact of this step on the exports of India.
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)
(a) Define Accommodating Items under Balance of Payments (BoP). (b) "Economic transactions that are recorded in the current account can be classified in two parts — merchandise and invisibles. Net inflows from both the transactions are referred to as Trade Surplus." Do you agree with the given statement ? Give valid arguments in support of your answer.
Read the following statements : Assertion (A) and Reason (R). Choose the correct option from those given below : Assertion (A) : Transfers from Abroad (remittances) are to be recorded on the credit side of capital account of Balance of Payments (BoP). Reason (R) : All the transactions that lead to inflow of foreign currency from the rest of the world are recorded on the credit side of Balance of Payments (BoP).
(a) Define Balance of Payments (BoP) Account. (b) Differentiate between autonomous transactions and accommodating transactions in Balance of Payments (BoP).
(a) Define Balance of Payments (BoP) Account. (b) Differentiate between Balance of Trade and Balance of Current Account.
(a) Define Balance of Payments (BoP) Account. (b) Differentiate between Current Account and Capital Account of Balance of Payments (BoP).
Assuming that, the following data is given for an imaginary economy : The balance of Trade from 2020 to 2021 _____ by Rs. _____ crore. (Choose the correct alternative) Items / Year | 2020 (Rs. in Cr.) | 2021 (Rs. in Cr.) Exports of visbles | 1,000 | 1,100 Imports of visibles | 800 | 850
Assuming that, the following data is given for an imaginary economy : The balance of Trade from 2020 to 2021 ____ by Rs. ____ crore. (Choose the correct alternative) Items \ Year | 2020 (Rs. in Cr.) | 2021 (Rs. in Cr.) Exports of visbles | 1,000 | 1,100 Imports of visibles | 800 | 850
Identify the correct pair of statements given in Column I with the related terms in Column II : Alternatives : Column I | Column II 1. Remittances from abroad to the nation | (i) Accommodating Transaction 2. Government policy of decreasing the value of the nation's currency against foreign currencies | (ii) Devaluation 3. Difference between visible exports and visible imports of a nation | (iii) Balance of Payments 4. Government as sole authority of determining foreign exchange rates | (iv) Flexible Exchange Rate System
Identify the correct pair of statements given in Column I with the related terms in Column II : Alternatives : | Column I | | Column II 1. | Remittances from abroad to the nation | (i) | Accommodating Transaction 2. | Government's policy of decreasing the value of the nation's currency against foreign currencies | (ii) | Devaluation 3. | Difference between visible exports and visible imports of a nation | (iii) | Balance of Payments 4. | Government as sole authority of determining foreign exchange rates | (iv) | Flexible Exchange Rate System
Identify the correct pair of statements given in Column I with the related terms in Column II : | Column I | | Column II 1. | Remittances from abroad to the nation | (i) | Accommodating Transaction 2. | Government's policy of decreasing the value of the nation's currency against foreign currencies | (ii) | Devaluation 3. | Difference between visible exports and visible imports of a nation | (iii) | Balance of Payments 4. | Government as sole authority of determining foreign exchange rates | (iv) | Flexible Exchange Rate System
On the basis of the given text and common understanding, answer the following questions : (a) Define Balance of Payments. (b) Differentiate between the two accounts of Balance of Payments. (c) Give the meaning of Balance of Payments deficit with formula.