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?

• 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?

• 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?

• 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.

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.