Class 12 Macro Economics: Balance of Payments
Chapter 12: Balance of Payments — learn the structure of the balance of payments, components of the current and capital accounts, and the difference between balance of trade and balance of payments. CBSE Class 12 Macroeconomics notes covering 4 topics: Introduction to Balance of Payments, Components of Current Account, Components of Capital Account, and Balance of Trade vs Balance of Payments.
Topics(4)
Introduction to Balance of Payments
Meaning of balance of payments as a systematic record of all economic transactions between residents and the rest of the world, and the structure of current account and capital account. CBSE Class 12 Macroeconomics notes
Components of Current Account
Visible trade and balance of trade, invisible trade covering services, income and unilateral transfers, and current account surplus and deficit. CBSE Class 12 Macroeconomics notes
Components of Capital Account
Foreign direct investment, foreign portfolio investment, external borrowings and assistance, changes in foreign exchange reserves, and errors and omissions as a balancing item. CBSE Class 12 Macroeconomics notes
Balance of Trade vs Balance of Payments
Difference between balance of trade and balance of payments, autonomous vs accommodating items, and the meaning, causes and corrective measures of BOP deficit and surplus. CBSE Class 12 Macroeconomics notes
Questions by Textbook
Study Simplify Special
Frequently Asked Questions
Purchase of a property by an Indian resident abroad can be recorded on the ___________ side of ___________ account of Balance of Payments. (Choose the correct option to fill in the blanks)
Read the following statements – Assertion (A) and Reason (R). Choose one of the correct alternatives given below : Assertion (A) : The Balance of Payments is in surplus, if autonomous receipts are greater than autonomous payments. Reason (R) : Autonomous transactions are determined by the difference in the Balance of Payments. Alternatives :
Gifts and remittances sent abroad are recorded on the ______ side of the ________ account in Balance of Payment. (Choose the correct alternative to fill up the blanks)
An Indian company receives a loan from a company located abroad. This transaction would be recorded on the ________ side of __________ account in India's Balance of Payment. (Choose the correct alternative to fill up the blanks)
Read the following statements carefully : Statement 1 : Borrowings by a nation from the World Bank to finance Balance of Payment (BoP) deficit will be recorded in the capital account. Statement 2 : Autonomous transactions are independent of the condition of Balance of Payment (BoP) account. In light of the given statements, choose the correct alternative from the following :