Question : Which of the following is an example of a unilateral transfer in the Balance of Payments?
Option 1: Export of goods
Option 2: Import of services
Option 3: Remittances from overseas workers
Option 4: Foreign direct investment
Correct Answer: Remittances from overseas workers
Solution : The correct answer is (c) Remittances from overseas workers.
In the Balance of Payments, a unilateral transfer refers to the transfer of money or assets between residents and non-residents without any corresponding economic activity. It is typically a one-sided transfer without any expectation of receiving something in return.
Remittances from overseas workers: This is an example of a unilateral transfer. Remittances are funds sent by individuals working in a foreign country back to their home country to support their families or for other purposes. It represents a transfer of money from a non-resident (overseas worker) to a resident (family or recipient in the home country) without any direct economic exchange.
