Question : Which of the following statement is correct?

• Deficit in balance of trade indicates deficit in balance of payments also.
• Foreign investment are recorded in the capital account of balance of payment.

Question : Which of the following statement is correct?

• Foreign investment are recorded in the capital account of balance of payment.
• Surplus in balance of trade and deficit and current account may coexist.

Question : Which of the following statement is correct?

• The official reserves transactions are taken as the accommodating item in the balance of payment.
• Accommodating items of trade are undertaken in order to maintain the balance in the BOP

Question : Which of the following statement is correct?

• Foreign exchange is demanded to make the payment for imports of goods and services.
• Foreign exchange is needed to meet expenditure incurred in foreign tours.

Question : Which of the following statement is correct?

• Supply of foreign exchange increases in the form of gifts and other remittance from abroad.
• Supply of foreign exchange comes from those who wants to speculate on the value of foreign