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?

• 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?

• 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.