ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit entry in Capital & Financial a/c
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Debit entry in Capital & FInancial a/c
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Credit entry in Current a/c
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Debit entry in Current Account
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Detailed explanation-1: -Any transaction which brings in foreign exchange (currency) is recorded on credit side whereas any transaction that causes a country to lose its foreign exchange is recorded on debit side.
Detailed explanation-2: -Australia’s balance of payments captures the transactions between Australian ‘residents’ and the rest of the world, in a given period. ‘Residents’ are defined broadly to include people who live in Australia, businesses that operate in Australia, the Australian government and other organisations that operate here.
Detailed explanation-3: -1 Answer. B. When receipts of foreign exchange are more than payments of foreign exchange, BOP is in Surplus.
Detailed explanation-4: -The balance of payment is the statement that files all the transactions between the entities, government anatomies, or individuals of one country to another for a given period of time.