Balance of Payments-Balance of Payments Account (CBSE Class-12 Economics): Questions 13 - 21 of 23

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Question number: 13

» Balance of Payments » Balance of Payments Account

Appeared in Year: 2012

Short Answer Question▾

Write in Short

Define stock variable.

Question number: 14

» Balance of Payments » Balance of Payments Account

Short Answer Question▾

Write in Short

List two items of the capital account of balance of payments account.

Question number: 15

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

Distinguish between the current account and the capital account of Balance of Payments. Is import of machinery recorded in current account or capital account? Give reasons for your answer.

Explanation

Current account is part of balance of payment account which shows items of flow nature. Current account includes given items: -

(1) Imports and exports of goods.

(2) Imports and exports of services.

The capital account archives transactions moving foreign assets and foreign liabilities during a year.

So, import of… (13 more words) …

Question number: 16

» Balance of Payments » Balance of Payments Account

Short Answer Question▾

Write in Short

State components of the current account of the balance of payments account.

Question number: 17

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

List the types of transaction that are recorded in the current account of balance of payments account.

Explanation

Current account of balance of payments records the following types of transaction:

  • Export of goods and services.
  • Import of goods and services.
  • Unilateral transfers from one country to other.
  • Net income abroad.
  • Net Current transfers

Question number: 18

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

How will you treat the following while estimating domestic factor income of India? Give reasons for your answer.

(i) Remittances from non-resident Indians to their families in India.

(ii) Rent paid by the embassy of japan in India to a resident Indian.

(iii) Profits earned by branches of foreign bank in India.

Explanation

(I) Remittances from non-resident Indians to their families in India is not added in domestic factor income of India because its remittances from non-resident Indians to their families is unearned income as transfer payments.

(ii) Rent paid by the embassy of japan in India to a resident Indian is not… (57 more words) …

Question number: 19

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

List the items of current account of balance of payments account. Also define ‘Balance of trade’.

Explanation

Thecurrent account of balance of payments is account which maintains records of imports and exports of goods and services

Components of Current Account of Balance of trade:

(1) Export and import of goods: - Export of goods are recorded by positive items they result in inflows of foreign exchange in… (104 more words) …

Question number: 20

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

Give the meaning of factor income to abroad and factor income from abroad. Also give example of each.

Explanation

Factor income to abroad: - In this payments are made to foreign citizens in native country. Example: salary is payed to US citizen in India by Indian company as income to abroad.

Factor income from abroad: - In this payment is accepted by citizen of native country a person who… (20 more words) …

Question number: 21

» Balance of Payments » Balance of Payments Account

Essay Question▾

Describe in Detail

Distinguish between balance of trade and balance of current account.

Explanation

Characteristics

Balance of trade account

Balance of current account

What is in includes?

Balance of trade account includes visible items of trade

Balance of current account includes transaction of items

What items are available?

export and import items are available.

visible items and invisible items are available.

What it records?… (15 more words) …

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