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.

Question

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.

Team Careers360 · Accepted Answer

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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Question : Which of the following statement is correct?

Profit received from investment abroad is recorded in capital account.

Import of machines is recorded in current account.

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?

Export and import of machines are recorded in capital account of the balance of payment account.

Current account of balance of payment account records only exports and imports of goods and

Question : Which of the following statement is correct?

Trade deficit is always a great cause of worry for an economy.

Borrowings from abroad are recorded in the capital account of balance of payment on the debit side.