Which of the following statements are correct in respect to Balance of payment?
A. Exports of goods are entered on debit side.
B. Transfer payments are receipts without rendering any services in return.
C. Capital account includes external borrowings.
D. Net invisibles are the part of current account.
Choose the correct answer from the options given below:
Which of the following statements are correct in respect to Balance of payment?
A. Exports of goods are entered on debit side.
B. Transfer payments are receipts without rendering any services in return.
C. Capital account includes external borrowings.
D. Net invisibles are the part of current account.
Choose the correct answer from the options given below:
Solution
B, C and D are correct: transfer payments (gifts, remittances, grants) are received without any service in return; external borrowings are recorded in the capital account; and net invisibles (services, income, transfers) form part of the current account.
A is wrong because exports of goods bring in foreign exchange and are entered on the credit side, not the debit side.
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