Study SimplifyStudy Simplify
NextQ50

(i) Distinguish between Balance of Payments and Balance of Trade. (ii) Define Current Account Surplus. (i) Using suitable example, distinguish between Foreign Direct Investments (FDI) and Foreign Institutional Investments (FII). (ii) State one example of External Assistance as a component of capital account.

Introduction to Balance of PaymentsStudy Simplify SpecialPYQ1MCQ
Question 49

Read the following statements – Assertion (A) and Reason (R) carefully. Choose the correct option from those given below : Assertion (A) : Shipping service provided by an Indian company to foreign companies will be recorded in current account of Balance of Payments (BOP). Reason (R) : Current account of Balance of Payments (BOP) does not alter the status of the asset or liabilities of the residents of India.

49/69
Back to all questions