Question : Which of the following statement is correct?
- For equilibrium in balance of payments, sum total of current account and capital account should be one.
- Withdrawal from reserve is recorded in capital account on credit side.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 2 is true and statement 1 is false.
Answer (1)
26th Jan, 2024
Correct Answer:
Statement 2 is true and statement 1 is false.
Solution :
For equilibrium in balance of payments, sum total of current account and capital account should be zero.
Withdrawal from reserve is recorded in capital account on credit side.
Hence option D is correct .
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