(ii) False, export and import of machine, it will be recorded in current account as it is a producer good exported. (iii) Government may resort to devaluation of its currency to encourage exports and restrict imports whenever the country suffers from continued deficit m BOP. ADVERTISEMENTS: Ans. The merits of a flexible exchange rate are: (i) Problem of over-valuation or undervaluation of currencies, deficit or surplus of balance of payment is automatically solved. 4 answers 20 views. The balance of payments situation has improved post-liberalization; Select the correct answer using the codes given below: a) 3 only. The net value of all these is the balance of current account. Block Follow. Ans. i. When Price of Foreign Currency Rises: (i) Imports become dearer resulting in less imports and therefore falls demand for foreign currency. BOP account shows a country’s inflows and outflows of foreign exchange. 1. A brief survey (Because I want to talk about something and perhaps make a … i. rises. What is trade balance? iv. It is a statement of account for a fixed period of time which is usually one year. Q.9. Learn about interview questions and interview process for 27 companies. Q.12. (i) Payment for exports are received in foreign currency. These are undertaken to maintain balance in the BoP account. ; interest and dividends flowing in and out of the country; receipts and payments from foreign travel and tourism; miscellaneous items like royalties, subscription, consultancy, telephone and telegraph services and transfer payments like gifts, remittances, donations etc. BoP Deficit Balance of current account includes balance of visible items, balance of invisible items and balance of unilateral transfer. Ans. I've seen their commercial for "Kidz Bops 17" like 50 times. Answer : a. Answer some questions and I'll recommend a song. Adding excess of inflows over the outflows on account of invisibles to the balance of trade is called balance on current account. 2. Government buys and sells currencies according to the needs of the country Flexible or Floating Exchange Rate. Bop It XT › Questions & Answers Bop It XT by Hasbro Customer Questions & Answers Find answers in product info, Q&As, reviews There was a problem completing your request. Components of BoP Account Questions and answers 1. We do not claim our questions will be asked in any interview you may have. (i) Devaluation refers to the reduction in the external value of the currency of a country. Question5: Explain the difference between short term capital asset and long term capital asset? It is so because it leads to outflow of foreign exchange. (iii) Foreign Direct Investment (FDI) into our country. only the visible items of economic transactions is termed as Balance of Trade. Classification of Economic Transactions in BoP Distinguish between fixed and flexible foreign exchange rate. As a result demand for imports etc. Share Your PPT File, Determination of Income and Employment (Top 22 FAQs). Q.8. Integration of … Exports and Imports come under the purview of : Ministry of Finance. The major BPO sectors for outsourcing are: IT and … I'd like to shake his hand . Our Top Ten Questions And Answers for Sales Interviews accounting questions and answers; Explain Componens OF BOP- (A Pages Minimura, Had- Written) Ruled Copy. (ii) External assistance is not recorded in Balance of Payments account. 1. 6 bop interview questions. 14. Explain the meaning of deficit in balance of payments. For example, an overall BOP deficit can be supported by drawing down the central bank’s reserve holdings. Deficit in BOP is determined only by the autonomous transactions. cheaper. Autonomous items, also termed as ‘above the line items’, are those items, which are related to transactions which are determined by considerations of profit (economic motive). (d) Ministry of commerce. (iii) Political factors, 1. (a) To reduce the value of home currency in other currency. What does balance of payments account show? are included in unilateral transfers. Ans. Shipping, banking, travel services, etc., are included in services. Welcome to EconomicsDiscussion.net! Applicants will answer vacancy specific questions necessary to evaluate an individual qualifications for the specific job to which they are applying. Current account shows the trade position of the country. Students and has been compromised ( i.e state the components of current account and current account transaction Written! A broader concept which they are selling and how they are applying should get! The integrity of the balance of invisible items of economic transactions is termed balance! 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