Question : In the Balance of Payments, a credit entry represents:
Option 1: An inflow of foreign exchange
Option 2: An outflow of foreign exchange
Option 3: A surplus in the capital account
Option 4: A deficit in the financial account
Correct Answer: An inflow of foreign exchange
Solution : The correct answer is a) An inflow of foreign exchange.
In the context of the Balance of Payments, credits and debits are used to record financial transactions. A credit entry indicates an inflow of foreign exchange into the country. It represents a positive entry or an increase in a specific account.
Question : Which of the following is not a type of balance of payments surplus or deficit?
Question : If a country experiences an increase in its foreign exchange reserves, it indicates:
Question : If a country experiences a decrease in its foreign exchange reserves, it indicates:
Question : Which account in the Balance of Payments represents the net change in a country's foreign assets and liabilities?
Question : If a country receives more income from its foreign investments than it pays to foreign investors, it will have a:
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