ECONOMICS
BALANCE OF PAYMENTS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Difference between visible items of exports and imports
|
|
|
Difference between invisible items of Exports and imports
|
|
|
Difference between external and internal flow of gold
|
|
|
Difference between all RECEIPTS of foreign exchange and payments of foreign exchange
|
Detailed explanation-1: -The BoP is the difference between all receipts of foreign exchange and payments of foreign exchange.
Detailed explanation-2: -In the short-term, that fuels the country’s economic growth, Mathematically, the balance of payments formula is represented as, Balance of Payments (BOP) Formula = Balance of current account + Balance of capital account + Balance of financial account.
Detailed explanation-3: -The balance of payments summarises the economic transactions of an economy with the rest of the world. These transactions include exports and imports of goods, services and financial assets, along with transfer payments (like foreign aid).
Detailed explanation-4: -Balance of Payments (BOP) is the summary of all the ‘economic’ transactions India has had with the rest of the world (ROW) in a financial year. Balance of Trade (BOT) is just the summary of the total exports and the total imports of India in a financial year. Balanced BOP is when forex payment and receipts are equal.
Detailed explanation-5: -1 Answer. B. When receipts of foreign exchange are more than payments of foreign exchange, BOP is in Surplus.