ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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which one of the following items are not the transactions of balance of trade
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Export of jute
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import of steel
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Banking services providedin other countries
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import of food items
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Explanation:
Detailed explanation-1: -GNP does not include dividends and interest from abroad in Income.
Detailed explanation-2: -Note: Changes in the foreign exchange reserves are not included in the current account of the BoP. The foreign exchange reserves are the financial assets of the government, held in the central bank. A change in reserves serves as the financing item in India’s BOP.
Detailed explanation-3: -Three items which are not included in balance of trade are: ✯Export and import of services such as of shipping, insurance and banking.
Detailed explanation-4: -Payments due as interest on loans and as net income from investments.
There is 1 question to complete.