Question : Which of the following is an example of an invisible item in the Balance of Payments?
Option 1: Import of machinery
Option 2: Export of services
Option 3: Foreign investment in domestic real estate
Option 4: Repayment of foreign debt
Correct Answer: Export of services
Solution : The correct answer is (b) Export of services
An invisible item in the Balance of Payments refers to transactions that involve the exchange of services, income, or transfers between residents of a country and non-residents. Examples of invisible items include exports and imports of services, such as tourism, transportation, consulting, and financial services. These transactions do not involve the physical movement of goods across borders.
Question : Which of the following is an example of a capital account transaction in the Balance of Payments?
Option 1: Import of goods
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 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
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
Question : Which of the following transactions will be recorded in the capital account of the Balance of Payments?
Option 3: Foreign investment in domestic companies
Option 4: Foreign aid received
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