Unilateral transfers made to abroad will be recorded as a debit item of BOP on current account.

True

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False

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Solution

The correct option is A True
It leads to outflow of foreign exchange.

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Similar questions

State the following true or false:

(a) Accommodating items are undertaken in order to balance the BOP account.

(b) Foreign exchange received on account of textile will be recorded in the capital account of the BOP.

Q.
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]

Name two items each relating to Current Account BoP and Capital Account BoP.

(a) The balance of visible trade is 4000 crores and the balance of invisible trade is 25,000 crores. If the value of imports of services is 7000 crores, what will be the value of export of services?

(b) State the following true or false:

(i) Accommodating items are undertaken in order to balance the BOP account.

(ii) Foreign exchange received on account of textile will be recorded on the capital account of BOP.

(iii) Autonomous items are also known as " Below the line items''.

Q. Are the following entered (i) on the credit side or the debit side and (ii) in the current account or capital account in the Balance of Payments account? You must give reason for your answer.
(a) Investments from abroad.
(b) Transfer of funds to relatives abroad.

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Unilateral transfers made to abroad will be recorded as a debit item of BOP on current account.

The correct option is A TrueIt leads to outflow of foreign exchange.

The correct option is A True
It leads to outflow of foreign exchange.