ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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As a service debit in the current account
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As an income credit in the current account
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As a service credit in the current account
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As a service credit in the capital account
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Detailed explanation-1: -United Kingdom Current Account recorded a deficit of 22.8 USD bn in Sep 2022, compared with a deficit of 44.1 USD bn in the previous quarter. UK Current Account Balance: USD mn data is updated quarterly, available from Mar 1957 to Sep 2022, with an averaged value of-1.5 USD bn.
Detailed explanation-2: -The empirical findings suggest that the increase in tourism revenues over this period has resulted in a decrease in the balance of payments deficit of 14%. Keywords: tourism.
Detailed explanation-3: -Financial account A current account deficit places the UK as a net borrower with the rest of the world, indicating that overall expenditure in the UK exceeds national income.
Detailed explanation-4: -the money received from the rest of the world in the form of borrowing and repayment of the loan is recorded on the credit side of a BOP. all the learnings to abroad by government-private sector etc in the money paid to inform of loan granted and repayment of loan taken is recorded on the debit side.