ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Debit entry in Capital a/c
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Credit entry in Current a/c (visible trade a/c
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Debit entry in Current a/c (Visible trade a/c)
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Debit entry in Current a/c (Invisible a/c)
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Detailed explanation-1: -Current Account: It shows export and import of visibles (also called merchandise or goods-represent trade balance) and invisibles (also called non-merchandise). Invisibles include services, transfers and income.
Detailed explanation-2: -In fiscal year 2021, the invisible balance to GDP ratio in India was around 4.7 percent, similar to the previous fiscal year. The invisible balance or balance of trade on services is that part of the balance of trade that refers to services and other products that do not result in the transfer of physical objects.
Detailed explanation-3: -The balance of payments of a country may tentatively be defined as a systematic record of the economic transactions during a given period between its residents and residents of the rest of the world, for convenience referred to as foreigners or sometimes, for greater clarity, as nonresidents.
Detailed explanation-4: -Current account. Financial account. Capital account. Decision-making. Developing trade policies. Establishing fiscal objectives. Implementing growth strategies. Analyzing deficits.