Question : Which of the following is an example of a unilateral transfer in the Balance of Payments?
Option 1: Export of goods
Option 2: Import of services
Option 3: Remittances from overseas workers
Option 4: Foreign direct investment
Correct Answer: Remittances from overseas workers
Solution : The correct answer is (c) Remittances from overseas workers.
In the Balance of Payments, a unilateral transfer refers to the transfer of money or assets between residents and non-residents without any corresponding economic activity. It is typically a one-sided transfer without any expectation of receiving something in return.
Remittances from overseas workers: This is an example of a unilateral transfer. Remittances are funds sent by individuals working in a foreign country back to their home country to support their families or for other purposes. It represents a transfer of money from a non-resident (overseas worker) to a resident (family or recipient in the home country) without any direct economic exchange.
Question : Which of the following is an example of a capital account item in the Balance of Payments?
Option 1: Import of raw materials
Option 2: Export of software services
Option 3: Foreign investment in domestic stocks
Option 4: Remittances by overseas workers
Question : Which of the following is not a component of the current account in the Balance of Payments?
Option 1: Exports of goods
Option 2: Imports of goods
Question : Which of the following is not a current account transaction?
Option 1: Import of goods and services
Option 2: Export of goods and services
Option 3: Transfer payments
Question : Which of the following is an example of a capital account transaction in the Balance of Payments?
Option 1: Import of goods
Option 2: Export of services
Option 3: Foreign investment in domestic real estate
Option 4: Repayment of foreign debt
Question : Which of the following is an example of a capital outflow in the balance of payments?
Option 1: Export of goods and services
Option 2: Import of goods and services
Option 3: foreign investment in domestic assets
Option 4: Domestic investment in foreign assets
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