Consider the following items in the balance of payment in India I. NRI deposits II. Remittances Which…
NRI deposits are financial inflows in the broad historical capital account; remittances are current transfers. OnlyI fits. OnlyII,both andneither misclassify the flows;…
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Consider the following items in the balance of payment in India I. NRI deposits II. Remittances Which among the above is/are part of the capital account of balance of payments ?
Answer and explanation
Correct answer A
NRI deposits are financial inflows in the broad historical capital account; remittances are current transfers. OnlyI fits. OnlyII,both andneither misclassify the flows; modern BPM terminology separates financial from capital account more narrowly.
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UGC NET Economics