Ques 1. Giving reasons, state whether the following statements are true or false (i) Current account of Balance of Payment account records only export and import of goods and services. (ii) Foreign investments are recorded in the capital account of Balance of Payments. (iii) Excess of foreign exchange receipts over foreign exchange payments on account of accommodating transactions equals deficit in the Balance of Payments. (iV) Export and import of machines are recorded in capital account of Balance of Payments account. (v) Difference between value of exports and imports of goods and services are called Balance of Trade. (vi) External assistance is not recorded in Balance of Payments account. Ans. (i) False, as current account of Balance of Payments account also records unilateral transfers. (ii) True, as all kind of foreign investments (foreign direct investments and portfolio investments) are included in the capital account of Balance of Payme...
