ECONOMICS (CBSE/UGC NET)

ECONOMICS

BALANCE OF PAYMENTS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The balance of payment is useful to international business people for the following reasons EXCEPT:
A
warning of new policies that could affect a country’s business climate
B
Indicating stability in a country’s foreign policy
C
Signaling increased riskiness of lending to countries
D
Predicting future technological changes
Explanation: 

Detailed explanation-1: -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.

Detailed explanation-2: -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-3: -Detailed Solution. Current Account of Balance of payments does not include Investments. Current Account of Balance of payment is the sum of Balance of Trade, NetFactor income & Net Transfer payment.

Detailed explanation-4: -Current account. Financial account. Capital account. Decision-making. Developing trade policies. Establishing fiscal objectives. Implementing growth strategies. Analyzing deficits.

There is 1 question to complete.