Question

From the following given sets of statements in column I and II, choose the correct pair of statements.

	Column I		Column II
A	BOT records imports of visible items only.	i	BOT is a part of Current Account.
B	Transactions recorded in BOT are recurring in nature.	ii	There can be surplus or deficit in BOT.
C	Current A/c is also a part of BOP records export and import of tangible goods.	iii	All transactions of Current A/c are also recurring in nature.
D	There can be surplus only in Current A/c.	iv	Current A/c also records unilateral transfers and factor incomes.

[0.80 marks]

• A. A
• B. B
• C. C
• D. D

Answer 1

The correct option is B B

Balance of trade (BOT) is a part of BOP that records exports and imports of merchandise only i.e., visible items.

BOT can be balanced or unbalanced. So, there can be surplus or deficit in BOT.