Advertisements
Advertisements
Question
Read the following chart carefully and choose the correct alternative:
Options
Interest received on loans
Multilateral Loans
Portfolio Investment
Government Aid
Advertisements
Solution
Portfolio Investment
APPEARS IN
RELATED QUESTIONS
______ constitute the third element in the BoP which is the 'balancing item'.
Identify the correctly matched pair of items of Column A to that of Column B:
| Column A | Column B |
| 1. Lending to Kenya | (a) Capital Account |
| 2. Export of Banking services | (b) Visible item |
| 3. Import of aircraft | (c) Invisible item |
| 4. Foreign aid | (d) Visible item |
Identify which of the following statements is true:
Unforeseen obsolescence of fixed capital assets during production is:
Identify the correctly matched pair from Column A to Column B:
| Column A | Column B | ||
| (1) | Increase of Foreign Reserve from $400 to $450 million | (a) | Credit side of Capital Account |
| (2) | Dassault Ltd. invested in Reliance Defence | (b) | Debit Side of Capital Account |
| (3) | India gave the line of credit to Botswana | (c) | Credit Side of the Capital Account |
| (4) | India borrowed $ 350 million from the world bank | (d) | Debit Side of the Capital Account |
In the Capital Account, purchases of assets are recorded as:
Sales of assets are recorded as Credits in the Capital Account because:
The Capital Account is said to be balanced when:
A surplus in the Capital Account occurs when:
A deficit in the Capital Account occurs when:
Which of the following transactions represents a capital inflow?
Which of the following is an example of a capital outflow?
Under the recording rule, transactions that bring foreign exchange into the country are recorded as:
Transactions that take foreign exchange out of the country are recorded as:
A domestic resident sells government bonds to a foreign investor. This transaction is recorded in the Capital Account as:
During a year, a country records: (i) receipt of External Assistance; (ii) residents purchasing bonds of a foreign government; (iii) FII inflows into domestic stocks; (iv) repayment of External Borrowings. Which transactions are recorded as Credit (+) entries?
A country's receipts from External Borrowings and sales of assets to foreigners are less than its spending on repaying loans and purchasing foreign assets. The Capital Account will show a:
