Match the items of List-I with the items of List-II and choose the correct answer from the codes given…
Balance of Trade is the record of the value of exports and imports of visible items (merchandise goods) of a country ((a)-(iv)). The Current Account covers imports and…
Choose your answer
Match the items of List-I with the items of List-II and choose the correct answer from the codes given below :
| List-I | List-II |
|---|---|
| (a) Balance of Trade | (i) Imports and exports of goods and services, unilateral transfers and factor incomes from abroad. |
| (b) Current Account | (ii) Transaction relating to changes in financial assets and liabilities of a country. |
| (c) Balance of Payments | (iii) Record of all economic transactions between a country's residents and residents of other countries. |
| (d) Capital Account | (iv) Value of exports and imports of visible items of a country. |
Codes : ((a), (b), (c), (d))
Answer and explanation
Correct answer A
Balance of Trade is the record of the value of exports and imports of visible items (merchandise goods) of a country ((a)-(iv)). The Current Account covers imports and exports of goods and services, factor incomes from abroad, and unilateral transfers ((b)-(i)). Balance of Payments is the complete record of all economic transactions between a country's residents and the residents of other countries ((c)-(iii)). In traditional broad usage, the capital account records transactions relating to changes in the financial assets and liabilities of a country ((d)-(ii)).
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