Question

In India's BoP structure, under which categories are 'Exports, Imports' and the 'Overall Balance' respectively classified?

Options

• Exports, Imports → Summary; Overall Balance → Current Account

• Exports, Imports → Current Account – Trade; Overall Balance → Summary

• Exports, Imports → Capital Account; Overall Balance → Accommodating Item

• Exports, Imports → Current Account – Trade; Overall Balance → Separate Item

Answer 1

Exports and Imports are classified under Current Account – Trade, while the Overall Balance is a Summary item in the BoP structure. Change in Reserves is the accommodating item, and Errors and Omissions is a separate item.