Match List-I and List-II related to the Balance of Payment Account : List-I List-II a. Credit…
In balance-of-payments accounting, a credit transaction is an economic transaction that leads to the receipt of a payment from foreigners (a-iii); the current account…
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Match List-I and List-II related to the Balance of Payment Account :
| List-I | List-II |
|---|---|
| a. Credit Transaction | i. An account showing change in a nation's assets abroad and in foreign assets in the nation (other than official reserve assets). |
| b. Current Account | ii. An account that includes trade in goods & services and unilateral transfers. |
| c. Service Transaction | iii. An economic transaction that leads to the receipt of a payment from foreigners. |
| d. Capital Account | iv. Part of current account that includes travel & transportation etc. |
Choose the correct code : (a, b, c, d)
Answer and explanation
Correct answer D
In balance-of-payments accounting, a credit transaction is an economic transaction that leads to the receipt of a payment from foreigners (a-iii); the current account records trade in goods and services along with unilateral transfers (b-ii); a service transaction is the part of the current account covering invisibles such as travel and transportation (c-iv); and the capital account (in the traditional broad classification) shows changes in a nation's assets abroad and foreign assets in the nation other than official reserve assets (d-i).
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RPSC School Lecturer (School Education)