Macro

Balance of Payments

Medium

Profits obtained by a foreign firm's branch in India will be recorded on which side and in which account of balance of payment.

Credit side of current account

Debit side of current account

Credit side of capital account

Debit side of capital account

✅ Correct Option: 2

Profits earned by a foreign firm's branch in India represent income payable to non-residents. This is an outflow of foreign exchange from India's perspective. Outflows are recorded on the debit side. Since profits/income are part of invisible items (factor income), they appear in the current account. Hence, debit side of current account.

2025: 26 May Shift 2

If the income of the country and income abroad increase simultaneously, then the domestic currency will.............

2026: 21 May Shift 2

A country's balance of payment account is in surplus when?

2025: 29 May Shift 2

In the balance of payments, the transactions of bonds and equity shares are placed under which of the following account?

2025: 30 May Shift 2

In modern economies, countries interact through various channels, Which market is not an example of these linkages?

2025: 16 May Shift 1

In a situation of Balance of payments deficit, which of the following will be true?

2023: 28 May Shift 2

Current Account components of trade in services include :

(A) Gifts, Remittances

(B) Net Non-Factor Income

(D) Grants

Choose the correct answer from the options given below :

Profits obtained by a foreign firm's branch in India will be recorded on which side and in which account of balance of payment.

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)