Which of the following items in a country’s balance of payments is classified as “invisible” ?
Foreign travel by tourists is an invisible transaction because it involves services rather than merchandise. Exports and imports of goods are visible trade, while foreign…
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Which of the following items in a country’s balance of payments is classified as “invisible” ?
Answer and explanation
Correct answer B
Foreign travel by tourists is an invisible transaction because it involves services rather than merchandise. Exports and imports of goods are visible trade, while foreign investment is a financial flow.
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Maharashtra and Goa SET (MH SET)