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Questions and Answers
Which side of the Balance of Payments Account will the import of services be recorded?
Which side of the Balance of Payments Account will the import of services be recorded?
- Credit side of capital account
- Debit side of current account (correct)
- Debit side of capital account
- Credit side of current account
Where will the purchase of 60% shares of a foreign company in America by an Indian company be recorded in the Balance of Payments Accounts?
Where will the purchase of 60% shares of a foreign company in America by an Indian company be recorded in the Balance of Payments Accounts?
- Debit side of capital account
- Debit side of current account
- Credit side of current account
- Credit side of capital account (correct)
How can an increase in foreign direct investment affect the price of foreign exchange?
How can an increase in foreign direct investment affect the price of foreign exchange?
- Create instability in the price of foreign exchange
- Increase the price of foreign exchange (correct)
- Decrease the price of foreign exchange
- Have no effect on the price of foreign exchange
When the price of foreign currency rises in a country, what will happen to the national income?
When the price of foreign currency rises in a country, what will happen to the national income?
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In which sub-account and on which side of the Balance of Payments Account will the lending of Indian investors abroad be recorded?
In which sub-account and on which side of the Balance of Payments Account will the lending of Indian investors abroad be recorded?
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