Which of the following transactions are recorded in the current account of the balance of payments?

Import and export of goods and services

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Transfers from one country to the other

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Both (a) and (b)

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None of these

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Solution

The correct option is C
Both (a) and (b)

The current account records imports and exports, as well as transfer payments.

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Similar questions

Q. Current account of Balance of Payments account records only exports and imports of goods and services.

Q. Assertion: Export and Import of goods (visible items) and Export and Import of services (invisible items) will be recorded in the current account of BOP.

Reason: These transactions do affect assets and liabilities of the parties involved.

[0.80 marks]

Find current account balance from the following:

$\begin{matrix} Items & (Rs in crores) (i) Capital account balance & 80 (ii) Export of services & 20 (iii) Balance of visible trade & 50 (iv) Transfers from one country to an another country & 5 \end{matrix}$

Q. Without Goods and Services Tax (GST)
Record the following transactions in Double Columns Cash Book and balance the book on 31st March, 2018:

2018		₹
March 1	Cash in Hand	12,750
	Cash at Bank	72,400
March 4	Received from Asha cash ₹ 1,200 and a cheque for ₹ 3,200, allowed discount ₹ 400
March 7	Paid salary to staff by cheque	25,600
March 9	Withdrawn cash from bank for office use	21,900
March 12	Interest paid by bank for office use	1,200
March 16	Purchased furniture in cash	16,500
March 21	Paid Mohan & Co. by cheque, discount received ₹100	10,900
March 24	Proprietor withdrew from office cash for his personal use	11,600
March 29	Sold goods to Manoj for cash	14,800
March 31	Deposited office cash into bank	21,200

Which among the following statement(s) is/ are correct about India’s balance of payment? (NCERT)

1. The current account records of export and import in goods and services and stocks and bonds.

2. “Golden Period” of balance of payment in India was during Independence.

3. High earning from invisible was one of the reasons for satisfactory Bop situation in post reform period.

4. India’s forex Reserve SDR and RTP.

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Which of the following transactions are recorded in the current account of the balance of payments?

The correct option is C Both (a) and (b) The current account records imports and exports, as well as transfer payments.

The correct option is C
Both (a) and (b)

The current account records imports and exports, as well as transfer payments.