Balance of Payments Account
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Questions and Answers

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?

  • 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?

  • 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?

    <p>National income will fall</p> Signup and view all the answers

    In which sub-account and on which side of the Balance of Payments Account will the lending of Indian investors abroad be recorded?

    <p>Debit side of capital account</p> Signup and view all the answers

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