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Posted by / 12-Dec-2015 01:15

Autonomous and accommodating transaction

Causes of Disequilibrium in Bo P (i) Economic factors (ii) Social factors (iii) Political factors 1.

What is the meaning of deficit in Balance of Payments?

Investment from abroad is a ‘credit’ item, whereas investment to abroad is a ‘debit’ item.

Two parts of Balance of Payments account are as follows: (i) Current account (ii) Capital account 10. Balance of Trade is in surplus, when the value of export of goods are more than the value of import of goods. List the transactions of current account of the Balance of Payments. The transactions included in the current account of the Balance of Payments are: (i) Export and import of visible items (ii) Export and import of services (invisible items) (iii) Unilateral transfers 12. Where are borrowings from abroad recorded in it and why? Balance of Payment The Balance of Payment (Bo P) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries.

(Delhi 2014,2010) or How is Balance of Payment ‘deficit’ measured? When the payments of a country on account of autonomous transactions exceed the receipts of the country on account of autonomous transactions, this difference is termed as Bo P deficit.

Deficit in Bo P = Receipts on account of autonomous transactions 6.

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Balance of Payments The Balance of Payment (Bo P) of a country is a systematic record of all economic transactions between its residents and residents of foreign countries. Classification of Economic Transactions in Bo P (i) Visible items (physical goods) (ii) Invisible items (services) (iii) Capital transfers (capital receipts and payments) (iv) Uni-lateral transactions 3.

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(Delhi 2013) or Distinguish between Balance of Trade and balance on current account of Balance of Payments. Difference between Balance of Trade and balance on current account 8.

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