ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One sided payments
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Reciprocal payments
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Factor incomes
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None of these
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Detailed explanation-1: -What Is a Unilateral Transfer? A unilateral transfer is a one-way transfer of money, goods, or services from one party to another. It is often used to describe payments made by a government to their citizens, or from one country to another country in the form of foreign aid.
Detailed explanation-2: -Unilateral transactions: Unilateral transfers include gifts, donations, personal remittances, and other ‘one-way’ transactions. These refer to those receipts and payments, which take place without any service in return.
Detailed explanation-3: -The primary examples of unilateral transfers are remittances and foreign aid. Remittances occur when a person in one country transfers money to a relative in another country and receives nothing in return. Foreign aid also involves a transfer, expecting nothing in return.
Detailed explanation-4: -Income earned from foreign investments is not considered a unilateral transfer. A unilateral transfer is a one-way transfer of money, goods, or services from one country to another.